I know very little about finance. I was watching Shark Tank the other day and was curious what the investor gets for owning a certain percentage of equity in a company. For example, lets say the entrepreneur makes a deal for the investor to own 20% equity in the company. How is the money he receives calculated? Since the investor owns 20% of the company (20% equity), does he get 20% of the profit (net income)? So if the company makes a profit of $100,000 after expenses for one year, the investor gets $20,000 for that year? What other benefits do they get or are they just like every other stock holder, but with more money? Thanks.
Submitted September 12, 2017 at 11:12AM by tone3000 http://ift.tt/2f1FDnG
