Starting your own business

About us Business Structures Business Plans Business Finance Flexible Business Loans Small Business Marketing Start an Internet Business Home Based Business Company Formation Accounting and Bookkeeping Business Zone Business Dictionary
Latest News : Cross in Hand, Horam, Blackboys & Five Ashes - Sussex Express      Q&A: David English and Perry Coppen of the Vegan Supplement Store - Startups.co.uk      London is one of the top 15 cities in the UK to start a small business | London Business News - London Loves Business      Beard boom inspires Daniel to create a range of natural grooming products - Liverpool Business News      A Q&A with George Chalmers, founder of energy switching service Migrate - Startups.co.uk      

Investing in Shares

 

The investor might choose to invest in the shares of a company in which case the business would be largely free to use the funds as it chooses.

It should be noted however, that in cases where companies invite subscriptions to their shares, they often specify the purposes for which the request is being made and therefore what the additional funding will be used to accomplish.

Although they are perhaps not obligated to then apply such funding as they previously stipulated, not doing so might increase the difficulty which they might face should they then apply for investment at a future date.

In most cases, the returns to a shareholder are not guaranteed and might fluctuate over time. They are usually last in the order of distribution of excess funds the company might have.

Typically, loans, debentures and other security based investments are paid before a distribution is made to shareholders.

The risk of owing shares is therefore greater, although the potential rewards usually out-weigh those associated with safer fixed return investments.

 
Email This Page  Print This Page


 
 
Site Search
Take the 6 question quiz and test your knowledge on matters relating to starting your own business
1. When running a business, which of these statements is generally true?
 
Profit is the same as cash in hand
Profit is not the same as cash in hand
Profit and cash are usually about the same
  
Submit
 
Single Question Survey
Did you know that company formations can be carried out entirely online without any need for paper or written signatures?
 
Yes
No
  
Submit