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<p>[QUOTE=&quot;fatima, post: 1339543, member: 22143&quot;]This is incorrect.&nbsp; They are not equivalent.&nbsp; </p><p><br /></p><p>In the first case you clearly own the company and clearly own the assets.&nbsp;&nbsp; However, the moment you reorganize the company so that it can issue stock then you no longer own the assets.&nbsp; The company owns the assets and instead you own shareholder equity in the company via that stock.&nbsp; That equity is defined as the assets owned by the company minus the liabilities of the company.&nbsp; These are hugely different situations and not just mere notations on paper.&nbsp; </p><p><br /></p><p>Second, stock is NOT a notation of legal ownership of a firm.&nbsp; It is a legal claim on the shareholder equity as defined by the balance sheet of the firm.&nbsp; It&#039;s expressed in $.&nbsp; Shareholders do not get their name on the firm&#039;s deeds, access to the firms bank accounts, etc etc.&nbsp;&nbsp; This is the legal basis for how a public company operates which is what we are talking about.[/QUOTE]</p><p><br /></p>

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