How do stocks and bonds benefit businesses?

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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

9 Answers

Anonymous 0 Comments

a bond is a simple credit. The company needs cash for various reasons (most often to invest into their business operations) and pays it back on a defined schedule.

A stock is selling ownership of the company. There are many reasons, previous owners want to retire, or they are looking for investors.

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