Internal reconstruction

Sir why do companies convert shares into stock. what is basic purpose behind doing so ?

The company can do it for various reasons. When a company converts shares into stocks, fewer shares will be available on the stock exchange. It helps a company to create demand for its shares in the stock market and also increases the earning per share (EPS) of the company’s shares. It is also capable of helping the company avoid hostile takeovers.

Answer given by Shubhamm Sir at 30-Jun-2023 04:19 PM