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