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<p>[QUOTE=&quot;fatima, post: 1339522, member: 22143&quot;]This is incorrect.&nbsp; You are not an owner of the company&#039;s assets, you have a claim on shareholder equity of the company.&nbsp; Huge difference.&nbsp; &nbsp; First, lets define what we are talking about.&nbsp; This discussion is about a public company which sells stock that people can purchase.&nbsp; There are two types of stock, preferred and common.&nbsp;&nbsp; Stocks sold on the stock market are common stock.&nbsp; Hence this discussion has been about the intrinsic value of common stock of a company as sold on the US stock exchanges.&nbsp; There are no hypothetical companies needed as all companies conform to the same law that meet this definition.</p><p><br /></p><p>If you own 100% of the stock or you are a 1/millionth owner of the stock of a $30 million dollar company, the only thing you own is a portion of the &quot;shareholder equity&quot; in the company.&nbsp; It&#039;s the company which owns the assets by definition.&nbsp; Shareholder equity is defined as company assets - liabilities.&nbsp;&nbsp; You also get to vote for the board of directors.&nbsp;&nbsp; Shareholder equity may not be weighted the same amongst all shareholders.&nbsp; </p><p><br /></p><p>If liabilities exceed assets, then shareholder equity in the company = $0.&nbsp; Shareholder equity is $0 and your stock is worthless.&nbsp; The hard assets may still be there, but you never owned them and have no claim on them. </p><p><br /></p><p>I can&#039;t think of a reason why someone would go through the expense and trouble of issuing common stock if they intended to hold 100% ownership of all the stock.&nbsp; The purpose of stock is to raise money.&nbsp;&nbsp; You can&#039;t do that if nobody can buy it.&nbsp;&nbsp; There are of course tax reasons for issue one preferred share of stock for yourself of what amounts to a private company, but we are no longer talking about common stock sold on a US stock market.[/QUOTE]</p><p><br /></p>

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