During 2006, 198 companies went public with common stock offerings, raising a combined total of $44.1 billion.

Question:

During 2006, 198 companies went public with common stock offerings, raising a combined total of $44.1 billion. Relatively few of these 198 companies involved paid cash dividends. Why do you think most chose not to pay dividends?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...