Which best explains what it means for a company to sell its stock?

Investors are lending the company money which the company must pay back later with interest.

Investors are buying a share of the loans the company has taken from banks. As the loans are repaid, the investor will profit.

Companies are trading shares of ownership with a business competitor, so that both businesses cannot have too great a loss.

Companies are selling shares of ownership and a share of its profits in exchange for money it can use to operate their business.

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Ellie Beasley

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2 May, 07:06

Which best explains what it means for a company to sell its stock?

Investors are lending the company money which the company must pay back later with interest.

Investors are buying a share of the loans the company has taken from banks. As the loans are repaid, the investor will profit.

Companies are trading shares of ownership with a business competitor, so that both businesses cannot have too great a loss.

Companies are selling shares of ownership and a share of its profits in exchange for money it can use to operate their business.

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Yadira · Answer 1

The answer is D. A company sells a stock to make a profit, or if the stocks price/value is plummeting and will soon become unprofitable to that company.