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Capitalization of Anonymous Societies
The same as with individually owned companies and with collective societies that can only use internal generated capital and bank credits for financing the expansion of their companies, the anonymous societies have at their disposition a great number of alternative sources of capital.
The anonymous society may “go out” on the stock exchange market and in this way acquire capital by offering their shares for sale. Therefore, this class of societies can also collect money by selling obligations to the investors.
More than 100,000 anonymous societies do business today in the United States. The size of these societies vary from local business with sales under the million dollars a year, to gigantic companies which annual sales surpasses the 1,000 million dollars a year, to gigantic companies which annual sales surpasses the 1,000 million dollars; some of these companies keep on functioning since the independence war.
Anonymous Societies That Don’t Quote In the Stock Exchange Market
The great majority of anonymous societies on the country are of this type. The company is owned by a few shareholders, who, in most of the cases, founding partners or descendants of them.
The way in which these grand shareholders manage their business activities is very much alike to that of the owners of small businesses or to those of the partners of collective societies.
The same as them, the type of society that is now our theme, finances its growth and expansion by the use of internal generated funds or by means of bank loans.
In many cases, the management of these anonymous societies doesn’t want to loose the total control of their exercise and, as consequence, don’t offer shares to the public. The society sells the shares directly to an individual shareholder, who, instead of trading them on the secondary market. Generally maintains them as a long-term investment. (In this type of operations there usually is no warrantor as intermediary or any investment broker, for which you don’t have to pay brokerage fee nor any other kind of charge; this makes that the total cost for this type of operations are generally low).