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Why do companies want shareholders?

Updated: 9/21/2023
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11y ago

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Companies need shareholders because the shareholders contribute funds to the company in exchange for their share of ownership. These funds finance various assets needed by the business to survive and grow. The funds may be used to build production plants, fund inventories, or buy other companies.

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Who controls public companies?

If you mean 'who owns public companies' the answer is the shareholders. If you mean 'who oversees the interests of the shareholders' the answer is the Board of Directors. If you mean 'who manages the day-to-day operations' the answer is the executives and officers of the corporation.


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What is the difference between merger amalgamation?

"Very often, the two expressions "merger" and "amalgamation" are taken as synonymous. But there is, in fact, a difference. Merger is restricted to a case where the assets and liabilities of the companies get vested in another company, the company which is merged losing its identity and its shareholders becoming shareholders of the other company. On the other hand, amalgamation is an arrangement, whereby the assets and liabilities of two or more companies become vested in another company (which may or may not be one of the original companies) and which would have as its shareholders substantially, all the shareholders of the amalgamating companies." I found it while surfing for the same... Hope it answers.


What is the practice of combining separate companies?

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By dividends paid to the shareholders of the company.


How many shareholders does Exxon have?

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How do corporations work?

Corporations are companies that are owned by shareholders. Each person is an owner.


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Do the shareholders decide who will be the CEO?

The board of directors, who are supposed to represent the owners/shareholders appoint the CEO. Ownership/shareholding of large public companies tends to be fragmented so only large shareholders may have some say.