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Buying stock (shares)

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Q: What is it called when investors buy part ownership in a company in return for a share of future profits?
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Continue Learning about Economics

What is it called when a company reduces staff in order to increase profits?

A reduction in the number of employees for any reason can be referred to as "downsizing."


What is an individual stock?

In individual stock (usually called a share) represents a portion of ownership in a company. For instance, if I own 1 share of Google, I have 1/x% ownership in Google where x is the total number of shares.


An economic system where all business is controlled by people who share equally in the profits is called?

Libertarian Socialism is the economic system based on equal collective ownership of property. It includes Social anarchism and libertarian Marxism.


Define comparative advantage?

When a company or an individual makes a product or carry out a certain economic activity better than its competitors is called comparative advantage. A comparative advantage gives the company an advantage to make higher profits.


How was the stock market created?

The current stock market as we know it was first formed in 1598 when Dutch merchants decided to create the biggest shipping company in the world, to monopolize the shipping trade.The first Shares of stock where sold to investors in 1602. They publicly offered shares in their new venture to any and all who had the means to buy them (cost was 3000 Guilders). Promising their investors a "SHARE" in the companies profits, also known as a "DIVIDEND". The new company was called the DUTCH EAST INDIA COMPANY ticker symbol "VOC". The VOC reined supreme for 198 years paying an average dividend of 18% and a high of 75% in 1606. It finally succumbed to greed, corruption and mismanagement December 31, 1799.

Related questions

What encourages people to buy shares in ownership of a company?

The dividends encourage the people to buy shares in the company as they would receive a share of the profits made by business they invested in.


What is a company that sells ownership shares to many investors called?

It is called a stable investment maybe idk


A company that sells ownership shares to many investors is what?

It is called a stable investment maybe idk


People who invest their money in a corporation in hopes of sharing in the profits are called?

Capitalism


The type of corporate ownership that has first claim on profits and assets is called a?

Preferred stock holders are those who have the first claims ob profits and assets.


What was it called when investors pool funds to sponsor passage to the new world and then profits from that investment?

new world emerging markets


What is divisible profit?

The profits available for the distribution among the shareholders of a company as dividend are called divisible profits.


What is a certificate showing ownership in a company called?

Stock.


The buyer who purchases and takes ownership of another company's accounts receivable is called a?

The buyer who purchases and takes ownership of another company's accounts receivable is called a factor.


What is a stockholders share of a company profit?

The stockholder's share of a company's profits are called dividends.


What is a stockholders share of a company's profit?

The stockholder's share of a company's profits are called dividends.


What is a stockholder's share of a company's profit?

The stockholder's share of a company's profits are called dividends.