Why does a company issue stock ? Why would the funders
share the profits wih thousands of people when they could
keep profits to themselves?
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 Option trading?
What do you know about "pradhan mantri jan dhan yojana"?
What is the amount of loan waiver to the farmers, which the government has raised to 20%?
What is effect of demonetization on your household, in particular?
Tell us the current Repo Rate and Reverse Repo Rate?
What is the difference between FII and FDI
What Is The Card Based Payments?
What are the various risks the banks face?
What do you know about CORE Banking Solutions?
What id FDI and FII?
Compare the product life cycle theory with the Hecksher Ohlin theory. Describe the structure of world trade organization.
What are the qualities of a good banker?
Where can I apply for tmb entrance exam?
Describe a typical day of an investment banking analyst?
What do you think about the role of technology in the banking industry?