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The Wise Investor


the company's assets, and they are all entitled to a
share of the profits that the company makes.
Owners can even sell their share of the company to
someone else. In fact, buying and selling shares of
companies has become so common that there are
'share exchanges' all over the world where people
can buy and sell shares in companies."
Kate pondered this. "Does this mean, John, that
in any form of business dealing, I could be dealing
with a company or a person, and it would make no
practical difference? Does this mean, for example,
that if I owned every single share of a company,
then it would be just the same as owning the assets
and employing the people myself?"
"Yes," her grandfather replied. "Once you realise
that a company is like a living, breathing, thinking
person, then many economic issues become much
clearer."
Kate followed the things her grandfather said,
but she wasn't quite sure why they were important.
Still, by this stage she was willing to take some
things on faith, and wait until the whole picture
began to fit together.
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