Introduction to The Purpose of a Company

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To own stock is to own companies and share in risks and returns in ways that bondholders do not. Let's look at these differences.

What you will learn

  • Money In and Money Out
  • The Two Types of Capital
  • Different Capital, Different Risk, Different Return
  • Return on Capital and Return on Stock
  • The Voting and Weighing Machines

What do you know?

Introduction to The Purpose of a Company

It's worth repeating that when you hold a stock, you own part of a company. Part of being an owner is understanding the financial underpinnings of any given business, and this lesson will provide an introduction.