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GCSE Business · key term
The sale of new shares in a limited company to raise money for the company.
Used by OCR
Paper 2
Revise: Methods of Raising FinanceA share issue raises finance by selling new shares in a limited company. A share represents part-ownership, so the buyers become shareholders. This route is available to limited companies, not sole traders or partnerships.
A share issue is available to limited companies, not sole traders or partnerships. A sole trader taking on a partner becomes a partnership.
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