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Questions and Answers
What is the primary purpose of issuing shares?
What is the primary purpose of issuing shares?
- To raise capital for the company (correct)
- To reduce the company's debt
- To increase the company's expenses
- To decrease the company's liquidity
What is the term for the value assigned to a share of stock?
What is the term for the value assigned to a share of stock?
- Par value (correct)
- Face value
- Market value
- Book value
What is a possible consequence of a company issuing too many new shares?
What is a possible consequence of a company issuing too many new shares?
- Dilution of existing shareholders' ownership (correct)
- Reduction in company's liabilities
- Increase in stock market price
- Boost in employee morale
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