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Old 12-10-06, 06:19 PM
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MDZ MDZ is offline
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Join Date: Nov 2005
Posts: 503
I guess that would mainly depend on whether you are loaning the company money in terms of debt financing or equity financing. In debt financing, you would be playing the part of a bank, and the company would pay you your loan back over time plus interest. In equity financing, you would purchase ownership in the business. Now, just because you own part of a business, it doesn't mean you will recieve money when the business has a profit. This will depend on what kind of stock you own (preferred or common) and whether the business decides to pay a dividend or reinvest its' profits back into the company.

Hope this helps,

Mark
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