An organization wants to raise cash in order to fund its expansion plans.The company that currently has 500,000 ordinary shares decides to issue 125,000 new shares to raise cash.The above is an example of:

Question

Quizplus · Accepted Answer

Issuing new shares to raise cash is an example of equity financing, where a company sells shares of its stock to investors to obtain the funds needed for expansion or other projects. This increases the company's share capital without incurring debt.

An Organization Wants to Raise Cash in Order to Fund