Explanation

Profit-making companies raise capital by selling shares to investors. Shares represent ownership in the company. When people buy shares, they give the company money to operate and grow.

Subscriptions, donations, and gifts are used by non-profit organizations like clubs or charities. These organizations don’t aim to make profit for owners. They serve different purposes than businesses.

Key point: Companies sell shares to raise capital. Non-profits use subscriptions and donations instead.