Question

Why do companies issue shares?

Answer 1

Companies issue shares in order to gain profit. These shares are virtual places in the company that gives the shareholder some percentage of revenue collected by the company. Now, this will render a loss to the companies but when the shares are sold they are issued in bulk (example : Company x issues 10 shares each that gives the share holder a return of 1$ this share is issued for 2$ but is a life time share money that is made from selling these shares is 20$ and they have to give 10$ to all ten share holders.) Of course this happens on an industrial level meaning in large quantity and is complicated but this example should sum it up