More about shares – the primary market
Companies generally issue shares to raise money.
That cash may be used to fund the business and expansion plans, or it may go to the founders as a payback for the risks they have taken setting up the company.
There are also other benefits. A stock market listing raises the profile of a firm, gives it easy access to new forms of funding, which might previously have been limited to a bank loan.
The market for new share capital is known as the primary market.
