A corporation may be valued above other forms of business ownership by the fact that large amounts of capital could be raised by selling stock in the corporation.
When a company decides to sell its shares on the market, it guarantees the raising of short-term capital that helps in its growth and expansion strategy, since there is an inflow of funds from the market.
Therefore, through the stock market, a company can satisfy its financial needs by attracting additional investors, avoiding debt and sharing the responsibilities of the business.
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