Share Issuance Quiz
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Questions and Answers

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?

  • Par value (correct)
  • Face value
  • Market value
  • Book value
  • 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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