A Public limited company cannot survive without shareholders!
The amount invested is HUGE!! More than they could possibly invest by their own means.
If a lot of people invest in a company, it does improve the reputation and goodwill of the firm. Quite obviously... people wouldn't invest if they didn't think they'd get good returns!
However, too many shares being sold could lead to over capitalisation of the firm.
we have shareholders in a business to make profit and to grow the business.we also have shareholders in a business in order to invest,it also brings expansion.
A corperation
a corporation kcp
Corporations have shareholders that invest in their business and expect a portion of the business's profits in return. Dividend payments are part of the shareholders' returns for investing in a business. Corporations have a choice to either reinvest their profits in shares, or keep a portion of the profits and paying shareholders dividends.
because they buy the stock
No.
Shareholders buy shares in a business on the stock market, putting capital into that business. What shareholders usually want is a return (profit) on their investment, usually in the form of dividends, or by selling off shares should share value rise.
Profit maximisation let the run business perfectly and better uses of resources or to pay dividend to the shareholders however also to expand their business to attract more new shareholders or give shareholder to reinvest in their company.
To create profit for the stakeholders / shareholders.
A corporation
Users of accounting data include shareholders, potential investors and suppliers. All of these shareholders want to make sure that the business is profitable before they do business with the company.
A corporation is the type of business organization that has shareholders. Other organizations call the owners by other names such as a partner in a partnership and a member of a limited liability company.