Why companies sell shares


So basically shares are what companies use to raise money, probably because they want to expand the business or maybe they want to fund a certain research, and they want to use the best researchers. 

So what they normally do is to list some shares which can be bought in order for them to raise that money and use it for that specific purpose which is needed for. So in short it, you're buying a piece of company and there is nothing complicated than that, so it is as simple as that. 

So in short, it is more like you have a company and you want to expand into some other African countries. So normally what they do is to sell, for example, 100 shares and to raise money. So for those who will be buying those shares, it means there will be owning a piece of your company. 

So the main question as an investor is or rather as an individual who bought shares in that particular company is that how are you going to make money or returns from that investment. So you will basically make money in two ways. The first way that you can make money it's when the company pays out dividends, just to make it a little bit more simple to understand. 

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