105 Introduction to The Purpose of a Company
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.
