Selling shares of stock to anyone allows companies to raise more money to grow. Investors that trade funds for these units to reflect equity ownership in companies or financial asset are owners of shares. Owners of corporation have option of issuing preferred shares or common stock to investors.
In exchange for funds required to expand and run business, companies issue equity shares to investors. From LLCs to large international companies, almost all the businesses issue shares of some type. A company's shares are referred to as being publicly traded once they are listed on a stock exchange following an IPO.
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