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
u/demanbmore and u/ooobs are both right. What I would add is more philosophical and fundamental: stocks benefit businesses in the ways they described, but, in a very real sense, stocks *define* business. The whole idea of a “company” is that a group of people can pool their resources to engage in an endeavor that no single individual can afford on his own. That’s why it’s called a “company”. Stocks are the mechanism by which those individuals pool their resources.
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