An advantage of selling stock is that the additional capital does not have to be returned to the stockholders as long as the business continues operations.

Question

Quizplus · Accepted Answer

Selling stock provides a company with capital that does not have to be repaid to investors, unlike loans or other forms of debt financing. Stockholders instead may earn a return through dividends and appreciation of the stock value, but the company is not obligated to return the initial investment.

An Advantage of Selling Stock Is That the Additional Capital