What is issuance of share?

Issuance of shares refers to the process by which a company creates and sells new shares of stock to investors, either to raise capital for business operations or to reward employees. This can occur during initial public offerings (IPOs) or subsequent offerings, and shares can be issued as common or preferred stock. The issuance of shares affects the ownership structure of the company and can dilute existing shareholders' equity if new shares are added to the market. Overall, it is a key mechanism for companies to obtain funding and grow.