I understand how they potentially benefit the individuals who buy them, but what do companies get out of selling them besides a little money just selling them?
In: Economics
Both the issuance of bonds and shares raise new money for a company, and they can use this new cash injection to expand, and generate more value for the owners of the business (shareholders) in the future.
If a company raises cash via the bond market, they have to pay this back at some point. This is the company simply taking a loan, but instead of using a bank, they borrow money from investors.
If they raise cash through stock issuance, they do not have to pay the money back (obvious benefit over the issuance of bonds), but they have to give up some control of the company, as each holder of a new share also has voting power. Overall voting power of existing shares (prior to issuance, probably when the company is still Private) will be diluted. Then new shares are also entitled to share in the profits of the company, also causing a dilutive effect for existing shareholders.
When shares are offered to the market, existing shareholders typically have the right to buy new shares, in proportion to their existing holdings, before they are offered to the general market, thereby avoiding dilution of profit and voting power.
Those are the basic reasons, however I would recommend reading Investopedia for more information.
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