Which best explains what it means for a company to sell its stock?
investors are lending the company money which the company must pay back later with interest.
investors are buying a share of the loans the company has taken from banks. as the loans are repaid, the investor will profit.
companies are trading shares of ownership with a business competitor, so that both businesses cannot have too great a loss.
companies are selling shares of ownership and a share of its profits in exchange for money it can use to operate their business.