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they do that so they can "share" the debt, if their company fails, with all the people who bought stock... yeah, yeah your welcome :)

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16y ago

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Related Questions

Do all corporations issue stock?

Yes


Can an LLC issue stock?

Corporations issue stock and are owned via stock. An LLC does not issue stock. Like partnerships, an Limited Liability Company is simply owned by the members and/or the managers of the company.


Why do corporations issue callable preferred stock?

Corporations issue callable preferred stock to have the flexibility to redeem or "call back" the stock at a predetermined price, allowing them to adjust their capital structure and potentially lower their financing costs in the future.


Why are only business corporations allowed to issue stock?

Stockholder security


What type of corporations are own by stockholders?

All corporations are owned by stockholders. Every corporation is required to issue stock.


Where to use the term member and where to use the term shareholder?

Corporations issue shares of stock, and would have "stock holders" or "share holders". LLCs are not corporations and do not issue stock. LLCs have member and would issue "certificates of membership" or "certificates of beneficial interest". Any reference to shareholders or stockholders in an LLC would be either from a confused individual or an attempt to confuse others.


What are the three basic types of securities corporations issue to raise long-term financial capital?

common stock, preferred stock, and bonds


What are the three basic types of securities corporations issue to raise long term financial capital?

common stock, preferred stock, and bonds


What type corporation are owned by stockholders?

All corporations are owned by stockholders. Every corporation is required to issue stock.


What are the different types of dividends corporations may issue?

1 - cash dividend 2 - Stock dividend 3 - Dividend in kind


Examples of stock and non- stock corporations?

company


What is the bureau of corporations?

the bureau of corporations had the authority to investigate corporations and issue reports on their activities