What are the risk of issuing stocks in a business?
February 14th, 2008 | by admin |Stephan Johnson asked:
I am thinking about staring a business, and issuing stock. What are the risks of stocks and bonds in this business?
I am thinking about staring a business, and issuing stock. What are the risks of stocks and bonds in this business?
2 Responses to “What are the risk of issuing stocks in a business?”
By john m on Feb 19, 2008 | Reply
The issue is control of the business. As long as you own over 50% of the stock, you are in control. However, minority shareholders rights cannot be completly disregarded. You should get some advice on a number of issues from your CPA & your Attorney.
By eauclaire101 on Feb 21, 2008 | Reply
Its almost like getting a loan for your business. You will need to pay back the investors somehow, or they will get very angry with you, like angry picketers with torches and pitchforks angry. Check my profile for a fun investment.