Issue Stock

Corporations issue shares of stock to raise money for their business. The shares that are issued represent the amount of money invested by the shareholders in the company. Shareholders have an ownership stake in the company and enjoy certain rights, such as voting rights and the receipt of dividends.

Why is it important? Companies have to invest in themselves.

The old maxim: “you need to spend money to make money.” If a company doesn’t issue stock or bonds, it will need other ways to capitalize, or will fail to launch.