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Why You Need To Buy and Sell Gold Coins (Part 1)
The Value of Gold in a Era of Paper Assets, Stocks, Bonds and Mutual Funds...
The facts behind the increasing demand for gold and silver, rare coins, and historic collectibles from the U.S. Mint...
No other substance on Earth embodies the...
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Six Things To Do In A High Risk Market
When the market turns against you, what should you do? Sell everything? We discussed that choice in a recent column. Selling everything draws your “line in the sand” and announces that you have determined there is no future for you in the market. ...
Using an LLC to Protect Your Wealth
Bulletproof" Your Wealth with Family Limited Partnerships and LLC's A limited partnership is a partnership that has at least one limited partner and one general partner. Most states require the filing of a certificate with the state in order to be...
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Ten New Investment Concepts, the Time has come…
There’s a rumor going around that the Mutual Funds are broken and just can’t work anymore, for a multitude of reasons. They’ve tried index funds, but these, too, have been less than impressive since they hit the street a few years back, and are...
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What Is A Company?
By legal and business definitions, a company is a business
enterprise, often times engaged in an industrial or commercial
enterprise, a group of people associated through a common goal
or financial objective. Companies vary in types, depending on
the services offered and the laws governing such financial
institutions.
Different types of companies:
Finance company
This type of company provides long-term or short-term loans to
their clients. They profit through the loans' interests, but
first makes sure that the individual asking for the loan is in
good credit standing.
Holding company
This company's sole purpose is to own stocks of other companies,
therefore giving it the freedom to control management and other
investments. Already considered a corporation, a holding company
offers no products or services, and often provides added
security and financing to its companies.
Growth company
Companies that exceed average growth in its field, and even the
over-all economic rate of the country due to high sales and
income return are often classified under this type.
Investment company
This is a financial institution that earns income by holding and
investing in securities issued by various companies or by
government agencies, as well as sell shares to interested
individuals.
Limited liability company
This is considered a state of legal entity, as well as being a
financial institution. It is also defined as a corporate
structure where those who own stocks and shares have limited
liability where the company's activities are concerned.
This type of company has been made possible to establish only
recently, having existed before in German-speaking countries.
English-speaking countries have followed
suit because of the
advantages of a partnership structure and not being double-taxed
as traditional structures dictate that a company be taxed once
for income, then twice for distribution of dividends.
But even as this type of company has a lot of advantages in
terms of flexibility, it also has it disadvantages one being
that there are less people who are willing to invest, as this
type of company is somewhat non-traditional.
Joint-stock company
This is defined as a company that pools together its members'
funds for capital, where transferable shares represent ownership
interest. In relation, a member's share correlates to his power
or control over the company, but also makes him equally liable
to company debts and actions.
Mutual company
Also referred to as a co-operative, this is considered to be a
private company, and is comprised of, and owned by, its
customers. The common goal is to raise funds from the members,
which will then be used by the same group of people through
various services.
There are also several functions that are similar to those of a
bank's, only that members can loan from their mutual company
with lower interests and a more flexible payment scheme. This
kind of company is also commonly seen in the insurance industry,
such that the finances of the company heavily rely on its
exposure and membership.
Trust company
Most often in partnership with a bank, this kind of company
engages in being a trustee in handling trust funds and financial
planning for individuals or estates at a custodian level.
About the author:
James Monahan is the owner and Senior Editor of CompanySpot.com and writes
expert articles about company.
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