A corporation in order to issue new shares will have to use ________.
A)financial leverage
B)an investment bank
C)accumulated profits
D)debt

Question

Quizplus · Accepted Answer

To issue new shares, a corporation typically has to use an investment bank. The investment bank can underwrite the shares, meaning it guarantees the purchase of the shares at a certain price, or it can act as a broker, helping the corporation sell the shares to investors. Financial leverage and debt are not directly related to issuing new shares, and accumulated profits may be used to buy back shares or pay dividends, but not necessarily to issue new shares.

A Corporation in Order to Issue New Shares Will Have