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People can buy shares (bits of the company) at a certain price per share. The money raised in this way is invested into the company. When the company trades its share price depending on its success will go up or down. Investors always hope to see the price go up. That way they can sell their shares at that price which will be greater than when they bought them and make a profit.

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9y ago
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9y ago

Mainly to make a profit.

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Q: Why do shareholders invest in companies?
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Related questions

How much influence does the stakeholders have on Asda?

Asda is owned by walmart and therefore the shareholders of walmart have a big say on ASDA. Because the largest shareholders of walmart are asset management companies that invest on behalf of there clients and shareholders they have a big say collectively. Normally these asset companies have between 2-5% each invested.


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Read about the companies you wish to invest in before you invest. Stay away from high risk companies.


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"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.