Re:Tesla shareholders reject bid to strip Musk of chairman role
by jernfrost on Friday June 08, 2018 @04:32AM
(#17263609)
I thought it was abundantly clear that I know that. In context it should have been clear that I was referring to the psychological aspects of it. To the person starting a company, it will not "feel" very different from borrowing money from someone.
What you are talking about are the concrete technical differences. We have no disagreement on those.
From the perspective of a person starting a company, he has to decide how to obtain money for building the company. He can borrow or he can issue stocks. Both methods give him money. The difference is in how the risk is spread and how the benefits are spread.
The person starting a stock company can't pay profits to himself without also doing so in equal measure to other stock owners. With the bank he only has to pay the interest on the loan.
No it isn't. It's 'fractional ownership', a mechanism designed to defray the risks of a single venture across multiple people because the risks were larger than any single individual could bear. The case that created it was the India runs with ships that could carry more valuable cargo than any individual could afford to buy or insure.
Spreading that risk through fractional ownership eventually led to the stockmarket. So it absolutely not at all like lending someone money.