Shares

Why do companies issue shares?

Companies issue shares to raise money from investors who tend to invest their money. This money is then used by companies for the development and growth of their businesses.

Company issues different types of shares namely; preference shares, ordinary shares, shares without voting rights or any other shares as are approved under the law. These allow the shareholders a stake in the company's equity as well as a share in its profits, in the form of dividends, and the aptitude to vote at general meetings of shareholders.