What is a Company

public corporation

a corporation that sells it's stock, first in an IPO (initial public offering), and then to stockholders

corporation

a company legally separate from stockholders who own it and the managers who run it

IPO

initial public offering

compounding

interest earned on interest

company

a business or association usually formed to manufacture or supply products or services for profit

sole proprietorship

a company owned and run by one individual who receives its profits or bears its losses

private corporation

a corporation that doesn't sell shares to the public

entrepreneur

a risk-taker or a person who organizes, operates, and assumes the risk for a business venture

bond

a type of IOU

advantages of being a stockholder

stockholders are not responsible for the company's debt; stockholders can easily sell their ownership shares through the stock market; a corporation continues to exist even if its stockholders or managers change

when does a company gets money from shareholders

when its stock is issued

owning a share of stock

you own part of the company