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ace9999999 | If you have a lot of stocks in a company, do you basically own the company? |
like say i had a lot of stocks in bally's total fitness...like 50 percent...but i wasn't a member...could i go there for free? |
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shiprepairwoman
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No, you can vote out the board of directors. |
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Grand T
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No. 50% is not a majority. It also depends upon what type of shares you own. However, with 50% ownership you will have some clout, but only if you have voting rights or if the quick sale of your shares would adversly affect the company!
Have a blessed day! |
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gregory_dittman
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There are three types of ownership with stocks. A low percentage which is the most common, a controlling interest which is 50% of the votes+1 vote and 100% ownership known as a buy out. Note there are two types of stock. A preferred stock which has more voting rights per share and a common stock which has one vote per share. You get the common stock on the stock exchange and the preferred stock at the IPO (where the original shares are sold in an auction like environment).
You may get rewards for ownership depending on the company or holding debt with the company. For instance Wrigley (the gum company) would give out free gum for stock owners. You might have heard of coupon bonds. Originally they literally had coupons, such as the ones you would find in a newspaper, on them and you would cut them off the bond and redeem them.
Now ownership can mean different things. Take McDonald's. You can buy shares in McDonald's, but it's a name not a fast food restaurant. McDonald's, the company, probably owns few if any real restaurants. They sell their name and products to people that buy into their franchise. Most, if not all the McDonald's restaurants are privately owned. Bally's Fitness is also a franchise, which means you would control the name, but you would have to buy into the franchise to actually get in for free. |
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Traci R
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First, I think you mean many "shares" of stock ("stocks" would refer to the stock of different companies). The question you are really asking is about corporate governance (decision making vs ownership). A company whose stock trades on a stock exchange (called a "publicly-traded company") will have a "board of directors" who are elected by shareholders and represent their interests. The board oversees the management team. The Chairman of the Board is frequently also the Chief Executive Officer (the head of the management team), so yes, if you owned >50% of the company's stock, you could probably go there for free or get your brother a job. If you were wasting or abusing corporate resources, however, you could be subject to lawsuits and criminal penalties (since you do have other stockholders). There are usually many millions of shares of stock outstanding in the types of corporations you have in mind, so we're talking hundreds of millions of dollars (as a side note, the value of all of a company's stock, price x # of shares, is referred to as its "market capitalization" and is available with most detailed stock quotes). |
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Clown
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If you owned 50.01 percent of a company, you own and control the company. And yes, you can go there for free. |
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Robert M
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bally's is in bankruptcy, hurry. |
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John D
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Nope. You have a certain percentage of voting rights on issues to do with the company. They should send you proxy votes in the mail. You own stock but have to buy a membership like everyone else. |
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