2007-09-05 07:20:54 · 5 answers · asked by Adam E 1 in Business & Finance ➔ Investing
MAny small businesses are run by one person and have the ablility to buy stocks through their small business. This gives them some siginificant tax advantages, and can afford to buy more given that the business is worth more than they are.
Otherwise, the answer would probably be...to make money.
2007-09-05 07:26:29 · answer #1 · answered by David P 2 · 0⤊ 1⤋
If you wanted to start a business and it would cost $100 to start the business. You get 10 people to invest $10 each, you have the money you need to start the business. They now each own a share of the business.
Now lets say a year from now, that same business is worth $1000, each persons share would be worth $100. and you now have a business that making more (factor of 10) money etc...
Very simple explanation but you get the idea.
The stock exchange is where these "shares" are traded.
2007-09-05 14:33:13 · answer #2 · answered by Jon 5 · 0⤊ 1⤋
wha do you mean by participate ?
do you mean their companies are listed on an exchange(to raise capital)
trade stocks(to make a profit on the price bought vs price sold)....
2007-09-05 14:30:42 · answer #3 · answered by richard t 7 · 0⤊ 1⤋
To raise cash to run the business.
2007-09-05 14:26:33 · answer #4 · answered by regerugged 7 · 1⤊ 1⤋
to make money
2007-09-05 14:25:49 · answer #5 · answered by Anonymous · 1⤊ 1⤋