Wize University Introduction to Financial Accounting Textbook > Shareholders' Equity
The Benefits of Share Ownership
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Benefits of Share Ownership
Investors who choose to purchase stock in a company do it in order to benefit from the success of that business.
Benefits
- Growth: the increase in the market value of the stocks represents a profit for investors.
- Dividends: the distributions of profits from the company to its shareholders.
- Limited liability: benefiting from the success of the business without taking on all the risk related to the operations.