question.jpgIn Business Law

What does the owner of a corporation actually own?

The owners of a corporation, the shareholders, own corporate stock. This corporate stock is issued by the corporation and the percentage of stock each shareholder owns, in relation to the total number of shares issued by the corporation, determines what percentage of the corporation the shareholder actually owns. This is similar to the ownership structure of LLCs, except that LLC owners own membership interests, rather than corporate stocks.