A company is a legal entity — separate from the people who own it — that carries on a business. It can sign contracts, own property, hire people, borrow money, and be sued.
That separation matters. If the company fails, its owners (shareholders) can generally lose only what they invested, not their personal assets. This is called limited liability, and it is one reason people are willing to invest in businesses they do not run.
From idea to ownership
- 1IdeaA founder sees a problem worth solving.
- 2BusinessThe idea becomes operations: product, customers, costs.
- 3CapitalGrowth needs money — more than the business generates.
- 4InvestorsPeople provide that money in exchange for a stake.
- 5OwnershipThe stake is divided into shares, which can be bought and sold.
How a business turns into something you can own
Step through the journey from a founder's idea to a tradable share.
Step 1 of 5: Founders
One or more people have an idea and put in their own money and time to start the business.
FoundersThe BusinessNeeds CapitalInvestorsOwnership
A share is simply a unit of ownership. Everything else in this course builds on that one idea.
Not every company has shareholders. A small shop run by one person may be a sole proprietorship. But once a business wants money from outside investors, it usually becomes a company and issues shares.