What is Share Share?
There are good reasons for companies to issue shares. This is not just a way to help you make money, but it is a way to help them make money. Of course, when you continue to buy and sell stocks, they will not profit from, but they do benefit from the initial sale.
When a company needs money to develop their company, they can not or do not want to get from bonds or other debts, they will issue shares. They can issue the initial amount and then issue more throughout the time. They sell the stock at a price and use that money as a profit. They then keep the outstanding stock in their books as equity.
The person who purchases shares becomes a shareholder. It is like a small business, the owner will put the money into the company, and then the money is called equity. In a company, shareholders buy the stock through the stock funds will be invested in the company, and then the money is called equity. That is why as a shareholder you are a part of the company.