Question

What do companies gain by offering shares for sale in a stock market?

A. They capture a greater percentage of market share.
B. They reduce their expenses without reducing revenues.
C. They increase their working capital without taking on debt.
D. They face fewer restrictions from the government.

Answer 1

When companies offer their shares for sale in a stock market, they are able to increase their working capital without taking on debt - c.

When this can happen, they are able start producing more goods and creating more things of value which can then be sold to the consumers and with them in mind in the first place.