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Yes, a company can create more shares to increase its capital by issuing new shares to investors. This process is known as a stock issuance or a secondary offering.

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5mo ago

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Related Questions

What is an advantage a company enjoys by offering shares for in a stock market?

the company can increase its capital without going into debt


How does a company increase its number of outstanding shares through the process of issuing more shares?

A company can increase its number of outstanding shares by issuing more shares through a process called a stock offering. This involves selling new shares to investors, which can help raise capital for the company. By increasing the number of outstanding shares, the company dilutes the ownership of existing shareholders, but it can also potentially increase the company's market value and liquidity.


What is an advantage a company enjoys by offering shares for sales in a stock market?

the company can increase its capital without going into debt


Ask us of the following is not a disadvantage of offering the sale of shares in a company?

The company can increase its capital without going into debt.


What is a advantage a company enjoys by offering shares for sale in a stock market?

the company can increase its capital without going into debt


Can a private co issue shares to meet its working capital needs?

Private company can increase number of directors who can contribute to share capital but cannot issue shares to public.


How can a company increase equity?

- By generating GAAP earnings and not paying them as dividends - the retained earnings will increase. - By selling and increasing outstanding number of shares - the paid in capital will increase.


What do you mean by shares?

A share in a company is one of the unity in to which the total shares capital of a company is divided.


How shares are created in company?

Shares are a part of capital which company has to decide and get that amount registered with ROC


Why are shares issued at a premium?

Well the company wants to profit. And issuing shares at premium provides capital to the company without changing its equity capital.


Why stock shares are important for a company?

Going public and offering shares of a company is a way to raise capital.


What accounts increase the capital account?

Capital account increases when capital is introduced, shares are issued, increase in retained profits, etc.