2006-12-09 09:07:02 · 3 answers · asked by Anonymous in Business & Finance ➔ Investing
No risk for issueing stocks. Bonds have difault risk. Stocks don't have default risk. Though the company can have operational and financial risk depending on the excess of overheads and excess of debt they undertake.
2006-12-10 05:25:29 · answer #1 · answered by Mathew C 5 · 0⤊ 0⤋
The owner and the brass no longer own the business and the new owners (the stock holders) can boot them and even close up the business and then sell off all the equipment and land. Even if they do stay on, they have to obey the SEC (lots of paperwork) and that time and energy gets a cut of the profits. The people running the business are in charge of the accuracy of the paperwork and could see prison time if the paperwork isn't accurate.
2006-12-09 10:02:57 · answer #2 · answered by gregory_dittman 7 · 1⤊ 0⤋
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2006-12-09 17:53:26 · answer #3 · answered by Anonymous · 0⤊ 0⤋