Fill in the Blank QuestionFill in the blank question.Corporations may sell in an attempt to raise money for ongoing activities.

Corporations may sell stocks in an attempt to raise money for ongoing activities.

Stocks represent ownership in a corporation and are a way for companies to finance their operations and growth initiatives. When a corporation issues stocks, it invites investors to buy shares, providing the corporation with capital that can be used for various purposes such as expanding business operations, developing new products, or paying off debt. The proceeds from the sale of stocks can also bolster the company’s balance sheet, enhancing its financial stability. Selling shares can be more advantageous than taking on debt, as it does not require regular repayments, although it does dilute the ownership percentage of existing shareholders. Therefore, equity financing through stock offerings is a common strategy for corporations looking to fund their ongoing activities.