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.