Corporations issue stocks for all of the following reasons, except
A) to purchase new machinery.
B) to expand into new markets.
C) to fund a plant expansion.
D) to loan money to shareholders.

Question

Quizplus · Accepted Answer

Corporations issue stocks to raise capital for various business activities such as purchasing new machinery, expanding into new markets, and funding plant expansions. However, issuing stocks is not a method used to loan money to shareholders. Instead, it is a way for the company to obtain equity financing from investors.

Corporations Issue Stocks for All of the Following Reasons, Except