Why would a company start selling shares?

Question

I don't know why companies sell stocks, couldn't they just keep the money for themselves? why do companies "go public" and put out stocks?

Answer 1

they sell the share to raise money to grow or expand the company

the shares are just piecs of paper before they sell them.

Answer 2

Did u refer Creative Technology Ltd in Singapore?

Answer 3

It's a way of raising cash for the company by selling a small part of it, rather than taking out a loan.

Answer 4

Let say you own a business and when you started to save money it was cheaper to rent a building month to month, then buy one.  Thats because you are not sure your business will make it.  If it does not  work out, you can walk away at the end of the month.   If you bought a building, and your business does not work out, you are now stuck with a mortgage each month with no income.  Now if you were renting but your business is doing well, now you would want to buy the building because it would be cheaper in the long run.  Loan payment for a busines are high because a business loan is usually only for 5yr.  So a company will sell share to raise the money to build the building, and give you a higher profit then they would pay a bank.   But they can pay you over many yrs.