Why does a company issue stock ? Why would the funders
share the profits wih thousands of people when they could
keep profits to themselves?
- 2 Answers
- 5672 Views
- I also Faced
- E-Mail Answers
Answer Posted / ammabali
Yes, If they want to keep all profit for themselves,
remember, even they have to contribute the while capital
from their pocket. As a proverb says, Dont gambel with your
own money, companies issue stocks. as a company is
artificial person, for any loss for the stock holders, the
founder of the company will not be resposible. Just imagine
you invest 1 rupee ang get 1 paise profit in next five
years!!! i hope this is clear
| Is This Answer Correct ? | 2 Yes | 1 No |
Post New Answer View All Answers
What is LAF?
Why should a business prepare fund flow statement?
How can social media be used for marketing?
What is PM Jan Dhan Yojana?
Does The Stress Test Account For The Impact Of The Outcome Of The Referendum In The United Kingdom On Eu Membership?
What is 'zero based budget (zbb)'?
Explain various types of debentures issued by companies.
Explain what is ratio analysis?
In terms of international banking what is Letter of credit?
What is priority sector credit?
Role of Bhartiya Mahila Bank in women upliftment?
What do you mean by cash credit?
What do you understand by overdraft?
What is the formula to calculate enterprise value?
What Is The Difference Between Net Cash Flow And Net Income?
