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

Lots of money. The companies get LOTS of money. An IPO can generate billions in cash for a company. Bonds of any amount can be issued. Companies use the cash for lots of reasons – growth, acquisitions, etc. But the benefit to the companies is cash, and lots of it. Google “biggest IPOs” to see just how much money has been raised

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