Investing in a company is always risky,.
But some people are more willing to take on that risk than others.
Shareholders of a company can take on two different roles:
The investor and
An investor is an individual who invests money into a company with the expectation of making a return at some point in time.
A saver invests their money for safety purposes, expecting no returns but also not taking risks.
As an investor, you should expect to receive more from your investment than what you put in.
Because you are accepting higher risks and working hard to bring about positive outcomes for your business!
There are a few ways to invest in a company.
The one most people think of is buying shares, or stocks, which represent ownership interest and can be liquidated at any time. When you buy an individual share for $100.
The company will issue 100 more shares to your account so that when they go public you have 100 total shares worth $100 each (assuming no change).
You also own part of all business decisions made by the board of directors but you cannot vote on them .
Because it would not make sense to let every shareholder decide what goes into place without understanding their needs, as well as the risks, are taken.
If something good happens with your investment then dividends may come from this profit share.