Ownership of company shares
1 answersQuestion asked ( August 05, 2009 , Shopping / Finance )
Can somebody explain me that if i own the shares of a company, do i become their partner in business?
Answers to : Ownership of company shares...
Answer
Shares are negotiable financial instruments which are traded in the equity markets. If the investors wish to retrieve their capital, they can sell their shares in the secondary market. If you own shares of a company, you become their equity share holder and not a partner.
Shares or stocks can be of two types which is common stock and preferred stock. Common stock is a financial instrument representing ownership and also carries voting rights which can be utilized for undertaking company’s decisions. Preferred stock does not have any voting rights, but enjoy the benefits of dividend payment before the dividends are paid to the other shareholders.
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