| Then, before a certain time period, the investor buys back stock called covering | Owning the majority of the shares allows other shareholders to be out-voted — effective control rests with the majority shareholder or shareholders acting in concert |
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| Even though the board of directors runs the company, the shareholder has some impact on the company's policy, as the shareholders elect the board of directors | Shares represent a fraction of in a business |
This process is called an , or IPO.
26| According to Behavioral Finance, humans often make irrational decisions—particularly, related to the buying and selling of securities—based upon fears and misperceptions of outcomes | The purchase of one share entitles the owner of that share to literally share in the ownership of the company, a fraction of the decision-making power, and potentially a fraction of the profits, which the company may issue as |
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| "Devil the Hindmost" by Edward Chancellor | Means of financing [ ] Financing a company through the sale of stock in a company is known as financing |
New issue may have specific legal clauses attached that differentiate them from previous issues of the issuer.
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