What are the risks of being a shareholder?

Generally speaking, as a shareholder, there are some risks:

(1) Risk of investment loss: If the company goes bankrupt, the more shareholders invest, the greater the risk of loss.

(2) No return on investment: if the operation is not good, the company has no profit or loss, and the shareholders have no profit.

(3) Take legal risks: illegal operation, etc.

(4) Internal risks: infighting, trust crisis, etc.

Extended data:

As a shareholder of the company, you should know the nature of your company. According to the current Company Law of People's Republic of China (PRC), companies are mainly divided into limited liability companies and joint stock limited companies.

Limited liability company: refers to a company in which all shareholders of the company are liable for the debts of the company only to the extent of their capital contribution.

Joint-stock company: refers to a company whose capital is divided into equal shares, and all shareholders are liable for the debts of the company only to the extent of their respective shares.

Company: refers to an enterprise legal person established in accordance with the law, with the purpose of making profits and funded by shareholders. The company has independent legal person property, enjoys legal person property rights, and is liable for the debts of the company with all its property.

Reference: How to Take Risks as a Shareholder —— Baidu Experience