This can be done if XYZ is planning in setting up a new manufacturing plant and raising money through Shares.
- The practise of obtaining money through the selling of shares is known as equity financing. Companies raise money because they can need it to pay expenses in the short term or because they have a long-term objective and need money to invest in their expansion.
How can shares be sold to raise money?
- purchasing shares A mature corporation can also raise money by selling shares in their business.
- For a certain sum, an investor can purchase firm shares, thus giving them ownership in the business. As the business expands, this enables investors to share in the profits.
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