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Why does a company issue stock ? Why would the funders
share the profits wih thousands of people when they could
keep profits to themselves?
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Answer Posted / ammabali
Yes, If they want to keep all profit for themselves,
remember, even they have to contribute the while capital
from their pocket. As a proverb says, Dont gambel with your
own money, companies issue stocks. as a company is
artificial person, for any loss for the stock holders, the
founder of the company will not be resposible. Just imagine
you invest 1 rupee ang get 1 paise profit in next five
years!!! i hope this is clear
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