shareholder

What Are the Risks and Rewards for Shareholders?

The primary reward for shareholders is the potential for capital gains if the value of the company's stock increases, as well as dividends. However, there are risks involved:
1. Market Risk: The value of shares can fluctuate based on market conditions.
2. Business Risk: Poor management or business decisions can negatively impact the company's performance.
3. Liquidity Risk: In some cases, shareholders may find it difficult to sell their shares without affecting the share price.

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