A corporation sometimes gives shares of its stock to promoters in exchange for their services in organizing the corporation.

Name: A corporation sometimes gives shares of its stock to promoters in exchange for their services in organizing the corporation.
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This is a common practice known as "promotional shares," which are usually issued before the company goes public and are given to individuals or firms who played a role in setting up the corporation, such as lawyers, accountants, or consultants.

A Corporation Sometimes Gives Shares of Its Stock to Promoters