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To raise funds (capital) for the company to use to develop, market, and produce their product or service.

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Q: Why would a company sell shares of its company?
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Related questions

How do you sell shares in a ltd company?

You dont.


Can you sell all your shares in a company at once?

no


If you have 500 shares of Cirrus Design Airplane stock How much would you expect to get if you wanted to sell them?

the company is privately held... How many shares are issued?


What ownership does topshop?

Topshop is a public limited company this means they can sell their shares in the stock exchange and they can sell shares to the public.


Why would a company sell shares to people?

one reason and one reason only: to raise capital


Why can't private companies sell shares?

A private company can sell shares, but only to friends or family. That is the definition of a private company. Should a private company choose to sell it's shares to the public, the company must register with the SEC for it then to become a public company. Evidence - A private company can sell shares, and remain a private company, using a Regulation D Exemption (to the Securities Act of 1933). To become a 'public' company, the company must be registered with the SEC under the Securities Exchange Act of 1934.


Which of following best represents the most direct power that stockholders have over the operations of a company?

Stockholders can sell their shares in the company at any time.


What is share in company how many shares do companies own?

A company can issue shares, which is like slicing the ownership of the company up into thousands or millions of pieces. If you own 10 shares of Apple Corp (10 shares is worth about $1000 US, currently) you've got part ownership of Apple Corp. However, since Apple has several billion shares outstanding, you would only own a very small part of the company. It's up to the company to decide how many shares to sell. Of course the more shares they sell, the less each share is worth.


Is it bad when a CEO sells stock shares in their company?

it it bad news when a ceo sell his shares


When does it become a public company?

When you sell shares to the general public.


What time can you sell shares to qualify for the dividend?

You can sell shares to qualify for the dividend on or after the ex-date (ex-dividend date), which will be announced the company


What power does a stockholder have?

stockholders can sell their shares in the company at any time,