The Main Functions of the Financial Sy ...
Achievement of Purposes People use the financial system for various reasons, which can... Read More
Companies issue equity securities in the primary markets to raise capital and increase liquidity. Having public shares also gives the company another currency to make acquisitions with or incentivize employees.
Raising capital aims to maximize shareholder wealth, which may be done through financing the purchase of long-lived assets, capital expansion projects, research and development, and/or the entry into a new product or geographic region. In some rare cases, capital is raised only to keep a company operating as a going concern.