A firm might issue stock to
A) finance a capital project.
B) decrease the number of owners.
C) to increase its debt.
D) employ more people.

Question

Quizplus · Accepted Answer

Issuing stock is a common way for a firm to raise capital for a capital project. By selling shares of stock to investors, the firm receives funding that can be used to finance new equipment, buildings, or other assets needed to grow the business. Stock issuance does not typically decrease the number of owners (B), increase debt (C), or directly lead to the employment of more people (D).

A Firm Might Issue Stock to