1: corporation definition
2: corporation works
3: corporation vs organization
4: example of corporation
Quick Pick :
When organization join together is made as corporation. corporation issue millions numbers of share and also it distribute the fair value of profit through dividends.
Corporation which is break into two words corpo and ration.
Clearly corpo means total body. which includes all the materials or parts into one matter. Ration means allowance which gives fixed amount of allowance to each person.
So the corporation means giving the fixed amount of equal results as commodities or money or anything but equally to the all part of the person or things in the one matter or body.
The corporation can be form in any type of things or matter or business or governments things, but which must have to gave the fixed amount of results equally to their all parts or things.
Now this article occupied the information about what is really mean corporation when comes to talk in the stock market. And how they work and distribute the equal results. Then what is different between the organization and corporation, finally with example about corporation.
1: corporation definition
The corporation are the one which had more than hundred and thousand of shares holder’s on the company. The share holders are not just holding the share to distribute profits of the company.
But the share holders are holding the real ownership of the companies. They are not alone equally distribute the profits but as well as equally face the loss too.
Unlike a small business, when the Corporations had huge debts or liabilities above or more than a it’s business asset while at the bankruptcy, it’s wouldn’t affect the personal net worth of the each Shares holders.
The asset which are hold by the Corporation are alone allowed to taken from the creditors for any kind of Corporations loss.
The corporation could have more than one business or products to earn money or ways, but that doesn’t mean each business or products services of the corporation are owned by every different person of the shares holder’s.
It doesn’t matter how much the product or service of business that certain corporation offers, the business of total corporation would be equal for entire shareholders.
If the corporation goes down its totally impact the entire shares holders of the corporation equally.
Or if the corporation do very well the entire shares of the profits raise on their net worth equally depends on the percentage of shares they owned.
So now let’s have a look on how actually corporations works in the stock market.
2: corporation works
Every corporation have the board of directors where they can act behalf of thousand and millions of shares holder’s.
This board of directors are elected or selected by the shares holder’s votes. The board of directors range from 3 to 35 members depends on the company sizes.
Every year all the public companies could conduct the annual meeting, there where new or old board of directors join or removed once a year if necessary.
This directors act as share holders to take necessary decision or action in the industry. The board directors also contain some insider of the company which include CEO.
Clearly boards act as owner and CEO act as Manager. So CEO can manage and run their low position employee of the total company operation to bring profits.
This profits are distribute to the whole ownership of part of all share holders or sometimes the board of directors have authority to decided to reinvest the profit for more growth in future.
Once corporation made money it’s also pay the taxes on their earned income. So now let’s see what is corporation and organization.
3: corporation vs organization
Any business which provide certain service or products all together
are not possible by one person. All the business or services are organize of people’s.
So the business and services are possible by organize of people’s to work for some product or service.
The organize of people’s for one work or service is called organization.
The each business which have group of people’s together to work their business product or needs which become an organization
When the same industry provide multiple service of business or products with multiple group of people’s then it is called as multiple organization.
The multiple organization got together and work for same shares holder’s of the company and gave the equal results for all the people’s.
So this multiple organization is called as Corporation.
Corporation are the one which contains lot of organization together and have the dividing ownership with millions and billions of shares holder’s and provide the equal exact profit and loss distribution.
Most people’s confuse the organization and corporation. The organization are occupied by the corporation. so the organization and corporation are not the same thing.
To make your more clear about corporation, Now have look one real world example of corporation.
4: example of corporation
Let’s take Apple company is the great example for Corporation it’s created different level of goods and services.
They create mobile phone, computer, watches, technical services for music and videos, i pads and More extra….
This each product are created by different groups of peoples not by single person. The different groups are consider as different organization.
Which is mobile phone sector organization, watches organization, computer organization, technical services organization extra…
This all organization include is called as a corporation.
Moreover the apples have billions of public shares holder’s all around world and apple distribute it’s profits of dividends equally to their entire billions of shares holder’s.
Market rule: #100144
Corporation came in the market rule because they are one of the main market participants who issued the shares to investors. Investors are completely responsible for any decisions they maded to buy certain industry stock.
If your investors and not comfortable or align investing with based on market rules please learn about how to regulate your investments under your control with use of Rule investing.