List the Primary Reasons a Company Might Invest in Equity

question 73

Essay

List the primary reasons a company might invest in equity securities. Explain how each of these reasons helps to achieve the primary goal of a business entity-to make profit.

---

Definitions:

Full Settlement

Full settlement is the process of completely resolving an obligation or debt through payment or another agreed-upon method, leaving no outstanding amounts.

Discount Period

The time frame in which a discount is offered for early payment on goods or services, or the period before a financial instrument reaches maturity.

Full Settlement

A financial agreement where all claims or debts between parties are resolved by paying a single lump sum.

Discount Period

The timeframe in which a discount is offered for early payment of invoices, encouraging quicker payment from buyers.