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Words: | Submitted: Mon Jun 19 2006
... incurring any individual responsibility is not as clear cut as the description from The Devil's Dictionary would infer. One of the most well-known benefits of a company is that the liability faced by the shareholders is limited to the extent of their investment and therefore the shareholder knows in advance the exact extent of any potential loss. It would not be unreasonable to assert that for the majority of those who invest their money in the shares of companies, they do so in order to make a profit; be it by way of a dividend or by buying shares when the share price is low and then selling their holding once the share price rises thus making a profit. For many this is the sole reason to invest although it is important to keep an open mind and remember that for all people this may not be the case and shares ...
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