Essay in the subject Business economics - Investment and Finance, , language: English, abstract: Public companies exist to serve their shareholders' needs. When public companies make money, shareholders are happy and satisfied, and the profits are distributed accordingly. Also, it is the shareholders who sacrifice their earnings per share when a company seeks expansion. All in all, all actions by a corporation directly affect shareholders. One known corporate step that directly affects shareholders is issuing additional shares. Companies issue additional shares to the market for different reasons, but one of the main reasons is to raise money from investors.