(A) Profit is the possible income from producing an additional item. Another option is to borrow money. (C) Profit is the additional income gained from selling an The amount of the premium is the difference between the par value and the selling price. It was the first electronic stock exchange in 1971. When a company issues stock, it is selling a piece of itself in exchange for cash. © 2003-2020 Chegg Inc. All rights reserved. Which best describes par value for a stock? Since there are no other answers yet, I will offer one but I am not suggesting its an authoritative one. to increase the company’s value Check all that apply. These allow the shareholders a stake in Add your answer and earn points. Asked 10/31/2019 1:55:09 PM. Preferred stock is considered to be a bit safer than common stock but the upside is generally lower. (A) Profit is the possible income from producing an additional item. Most jurisdictions do not allow a company to issue stock below par value. They vary from preferred stocks in two key ways. What best describes why a company issues stocks? Answers: 3 Get Other questions on the subject: Business. User: A cluster of ... Weegy: Glaciers contain close to 70% of all the fresh water on Earth. 2. (B) Profit is the price of producing one additional unit of a good. New questions in Mathematics. Whatever the reason, value investors look for these types of stocks, betting that the market will someday realize the company's true value and the stock … not the price of goods rises suddenly and extremely fast. Therefore, investors should wonder why companies would issue preferred stock paying a generous dividend when they could presumably issue debt … Stock is the third and most successful mechanism for corporation to develop capital.. Stock is the selling of ownership in the form of a stock certificate representing a percentage of the overall company. In fact, the first company in history to issue stocks to the public was the Dutch East India Company (VOC). The form of a city government merges executive and legislative ... is it by answering question that i get paid? If you buy, for example, stock in Apple (NASDAQ:APPL) and profits grow for the next few years, you'll be treated to a rising share price and grow wealthier along with your fellow owners. A common example of this is if a company issues 10,000 shares and someone buys 1,000 shares, they own 10% of the company's assets. The following best describes why a company issues stocks: to raise capital. In this case, if XYZ's shares are trading at $100, then a $0.50 cash dividend payout reduces the company's share price by $0.50 to $99.50. 1  Here’s how it works: Say a company makes it through its start-up phase and becomes successful. out of all the 300 units available in the stock. to increase the company's value to ensure profits to increase dividends to raise capital O Mark this and retum 1 See answer michaelqualls11 is waiting for your help. What needs to be done to solve the issue and can it really be solved once and for all in the future? (D) Profit is the financial gain from business Shareholders who own preferred stocks receive dividend payments before shareholders of common stocks, but preferred stocks do not come with voting rights. s. Log in for more information. This is quite common, since the par value is typically set at a minimal value, such as $0.01 per share. As with any produced good or service, corporations issue preferred shares because consumers—investors, in … The following best describes why a company issues stocks: to raise capital. For instance, a company might build a new factory or hire additional employees with this money. (A) Profit is the possible income from producing an additional Stock control, otherwise known as inventory control, is used to show how much stock you have at any one time, and how you keep track of it.. to increase the company’s value to ensure profits to increase dividends to raise capita. That would be a conversion ratio of 4:1 or 5:1. Generally, the company wants to adopt a … Evie Liu. Terms This answer has been confirmed as correct and helpful. to ensure profits The cultivation of … These 5 Stocks Look to Offer the Best Return-on-Equity Growth, Goldman Sachs Says . , since the stock over time, it 's the best definition of?... 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