Individual Stocks

Individual Stocks: The Basics

How do companies use the proceeds of a stock issue?

A stock may also be created, and then marketed and sold, when a company wishes to raise capital or cash to help fuel its business development, to pay off loans and other debt, and perhaps to buy back shares from other investors at attractive prices. A company’s stock is originally valued when the company first begins, based upon its capital or cash and other initial assets.


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