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Question 6
What is the chief reason corporations issue stock?
O To raise money for the corporation.
O To secure tax advantages.
O To give consumers ownership in their company.
To help the economy.

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henrydesanta

Answer:

The answer is,

O To raise money for the corporation.

Explanation:

Issuing share is a method of financing for a corporation. Company can borrow money from external parties such as banks or issue debentures as well. However, the cost of such borrowings tends to be higher than issuing equity stocks and there are many legal necessities as well in such a process.

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