2 ms·
I mean stock literally gives you a fraction of shareholder equity, which in total, is Assets - Liabilities. So maybe you don’t own the assets before the liabil
by mruts 8y ago
I mean stock literally gives you a fraction of shareholder equity, which in total, is Assets - Liabilities.
So maybe you don’t own the assets before the liabilities, but stock is very literally giving you ownership in the company.
- syntaxing 8y agoNot most (if not all) Chinese owned companies on the US stock exchange. Chinese laws prevents the ownership of foreign entities on companies. To circumvent this, most of the "stocks" on the exchange is for a subsidiary and the stock holders has zero ownership over the company, similar to a C stock for Alphabet. Alibaba for example, you are owning a subsidiary that shares the profit in the Cayman Islands. You are not owning any part of the company.