Question

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 investors will profit.
The company is trading shares of ownership with a business competitor, so that both businesses cannot have too great a loss.
The company is selling shares of ownership and a share of its profits in exchange for money it can use to operate its business.

Answer 1

Am I right with D?

Answer 2

@mrmudd183

Answer 3

From what I learned in Accounting Class, a company sells its stock to increase their profits and to increase interest in stockholders/shareholders

Answer 4

hmm so your thinking B?

Answer 5

this is 7th grade civics btw

Answer 6

Not exactly, companies don't sell their stocks to pay back a loan from the bank all the time

Look at the DOW Jones, people invest into that stock to help increase its value of the share and to also increase money in their pocket

Answer 7

Wait so D?

Answer 8

Yep C:

Answer 9

It makes the most sense

Answer 10

Thank you!

Answer 11

You're welcome C:

Answer 12

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