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What else can I help you with?
Which type of stocks have the lowest risk to shareholders?
There are two types of stock: preferred stock and common stock. Preferred stock has the lowest risk to shareholders.
Can directors also be shareholders?
Yes, directors can be shareholders. In most small businesses, in fact, the directors are almost always shareholders. In larger companies, directors' compensation often includes stock or stock options so even individuals who did not own stock in the corporation at the time they were first elected as directors become shareholders over time through their purchase of stock or exercise of their stock options.
What is the relationship between shareholders with company or corporation?
Shareholders are the people who invest from in the corporation by buying stock.
Why are the shareholders the owners of the business?
because they buy the stock
Why sell stock?
To raise capital. Let's say I wanted to build a mall. I sell stock to raise money to build the mall. The people who bought the stock are called shareholders. Shareholders are part-owners of my mall.
What is the difference between a stock dividend and a cash dividend?
A stock dividend is when a company distributes additional shares of its stock to shareholders, while a cash dividend is when a company pays out cash to shareholders as a form of profit sharing.
Why corporations sell stock?
To raise capital. Let's say I wanted to build a mall. I sell stock to raise money to build the mall. The people who bought the stock are called shareholders. Shareholders are part-owners of my mall.
The effect of a stock dividend is to transfer what?
transfer additional shares of stock in the company to existing shareholders
What were shareholders of a corporation?
People who buy stock and own the company.
Who are shareholders of a corporation?
The people who buy stock and own the company.
What is owned by a limited number of shareholders?
Common Stock in a company.
When you buy stock, where does the money go?
When you buy stock, the money goes to the company that issued the stock or to the existing shareholders who are selling their shares.
