Then there s you. Well, not all of you, but some of you, I bet. Not a problem. So even if you don t have money to invest, you ll be able to hold your own in a conversation on the topic. Most companies start out as private ventures the founder or founders own the entire company that is, all the stock.
Many startups issue stock privately just to get the company off the ground.
These early, bold investors typically get sweet deals because they re taking a greater risk with a startup than with a company that s proven itself. The number of private shareholders is limited by law, so the company will typically seek out just a few investors willing to put up a lot of money. These people are often called venture capitalists they provide the capital for a new business venture. You hear a lot more about publicly issued stock. Especially lately, when it seems like every other week someone becomes a billionaire the day his Internet company s stock goes on the market.