Page 27 - Intelligent Investing (3)
P. 27
Why do companies sell stock?
Companies go public (allowing everyone to buy shares) to raise money(capital) to
grow & expand the company
They go public by having an Initial Public Offering (IPO) which is when a
company is first available for investors to purchase shares
Companies sell shares on what’s called a Stock Exchange such as the New York
Stock Exchange (NYSE)
When a company is on the stock exchange they are no longer a private company
but a Publicly Traded Company
