Why does making one investment in a company entitle me to a share of that company for life?

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Why does making one investment in a company entitle me to a share of that company for life?

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Anonymous 0 Comments

It doesn’t unless that’s what the company offers you in return for the investment. it’s a contractual arrangement.

There are other arrangements. Some investors get royalties on merchandise sold, for example, and no shares in the company. Some invest in the form of loans that are meant to be paid back with interest.

Anonymous 0 Comments

I presume you are talking about acquiring a share of stock? Because there are many other ways to invest in a company (bonds, direct loans, derivaties, etc.) which not only do not entitle you to a share of that company for life, but *never* entitle you to a share in the first place.

So assuming you are talking about stock, the better question is, why *wouldn’t* you retain ownership of something you’ve purchased? It’s the same as if you bought a pencil. You own it. It’s yours until you die or throw it away. Or if you and your buddy bought a coffee shop 50/50, your 50% ownership is yours, it doesn’t just evaporate randomly unless acted upon by an outside force (sale, taxes, legal judgment against you, etc.)

So if you buy one share of, let’s say, Microsoft, you now own 0.00000001% or somesuch of Microsoft. It’s yours until you sell it, give it away, die, or have it taken away from you by some legal means.