Entrepreneurs protect your hard work - Form a Corporation Part 2

Can An Individual Buy & Sell Stock?
 
If an individual buys stock in a corporation they will received a certificate that shows how many shares they have purchased.  With a public company, the individual can transfer any and all of their stocks as well.  If an individual wishes to sell their shares, they do not need the approval of other stockholders and the same is true for purchasing stocks.  Privately held companies may have restrictions on the transfer of stocks.
 
Do Investors Manage The Corporation?
 
In general, no.  Most corporations hire their own team of managers to operate the company.  The investors will vote to decide who will hire the management team.
 
How Corporations Raise Capital:
 
A corporation can easily raise capital by selling stocks and bonds which provides the corporation with a greater amount of resources because they are not limited to a small number of people.  Because of limited liability and the ability to transfer ownership rights makes it very easy to raise capital by selling stocks and issuing bonds.
 
Corporations Must Deal With Problems Or Pay The Consequences:
 
A corporation's objective should be dealing with at least 80% of all problems.  There should always be a set deadline for making decisions and stay with those decisions.  Decide who will be responsible for solving problems.  If a corporation does not have someone in place, there can be serious repercussions.
 
Problems that can arise might be due to poor management, unforeseen damage to stockholders, not realizing the full potential value of a corporation, and not offering incentives for better management.
 
 
Are There Government Regulations For Selling Stock?
 
There are government regulations in place for selling stocks in order to protect the stockholders and the owners.  State laws have their own requirements for issuing stocks and distributions to the stockholders.  Publicly held entities with stocks trading on the stock exchange are required to file their financial statements and other needed documents with the Securities and Exchange Commission.  Federal securities laws govern the sales of stocks.