Share Issue - GCSE Business Definition

A share issue is when a company offers new shares to investors to raise capital. This process can occur through a public offering, where shares are sold on the stock market, or a private placement, where shares are offered to a select group of investors. In GCSE Business, it's important to understand that issuing shares helps businesses secure funds needed for growth, expansion, or repaying debts.

When a company issues shares, ownership is divided among more shareholders, possibly weakening the control and decision-making processes within the company. Share issues can be advantageous as they do not incur interest, unlike loans, but they do dilute the existing ownership, which might influence the company's future strategic direction.