1.

How is it possible for a company to raise huge capital?

Answer»

Huge capital fund:

  • To raise the capital a company divides the entire capital it needs in tiny fractions known as shares.
  • This attracts people to invest in the company through buying their shares and hence become share holder or say part owner of the company.
  • People also buy shares with an objective of earning profit by trading them in the share market.
  • The voting right is per share so people get attracted and invest as much as possible which then helps the company to raise a very large capital.


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