why do companies issue their shares?
okay!!! very good question. before going to start our original discussion we need to understand that how many ways are there to raise money to expand the company's business. so there is mainly a total of three ways to raise money. there are many other ways to raise money but we are discussing about that which are the main ways to raise money. debt:- debt is a very popular way to raise money. so that companies need to take huge loans for short term or long term time and companies need to pay their loans accordingly term basis. but the disadvantages of debt is companies need to give an interest of a loan. which will become worst where the loan amount is too huge. pledge share:- company can pledge currently issued shares to the bank to raise more money from the bank. it is a very risky way to raise money from a bank. but if the share price goes down the company has to pledge more shares to the bank as the current share price and the price which the company pledges their share is dif