Friday, September 23, 2011

How does purchasing stock of a company function as monetary support to them?

If I am against the business practices of Chiquita Banana and Nike, how does purchasing their common stock support them? Is merely holding then trading stock of these companies immoral?|||If you buy stock from them, they now have that money to enhance their business.





You are now a part owner of the corporation, and entitled to vote at shareholder meetings and entitled to view certain corporate records according to the law of the state they are incorporated in.





Being a shareholder, and not an officer, director, manager or employee of the corporation, you are not liable for anything the corporation does, except in terms of share price. If the share price falls, you lose money, nothing more.





It is not immoral, but as a shareholder, you have a say in how the corporation is run.|||by using their stock, you show that you want their company to profit, and thus increase your own stock's worth.

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