Quote:
My point is that when you buy stock in a company, you give them money, they give you a piece of paper,


In this case, you are buying a share of the company. Which makes you a part owner, and carries an entitlement for you to receive a share of the profits. They don't have to buy your share back if you change your mind, but they do have to share out the profits [EDIT] equally to you and any other share holders. Many companies prefer not to release profits to their owners, and to simply hang onto the cash (retained earnings) instead. It is up to the shareholder representatives ("the board of directors") to police this.

Cheers


Edited by mlord (19/03/2006 21:51)