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Answer Posted / shoukatali
Imagine that you own a business. If you were to divide that
business up into small pieces and sell those pieces, you
would essentially have issued stock. Quite simply, STOCK IS
OWNER SHIP IN A COMPANY
The money you raise from selling those "pieces" of your
business can be used to build new plants and facilities,
pay down debt, or acquire another company. A smart owner
will keep at least 51% of the stock, which will allow them
to retain control of the day to day activities. Any person
or institution that owns over a majority of the stock is
called the "controlling shareholder". Essentially, this
person can do anything they want - right down to firing the
CEO.
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