Answer:
expect investors to share in profits and losses.
Explanation:
An investment can be defined as the acquisition of fixed capital assets such as plants, stocks, equipments, etc., items or goods for the sole purpose of generating income in the future. The goal of all investors is to purchase assets or properties that would appreciate over time i.e an increase the value of the assets compared to when it was acquired.
Rate of return can be defined as the percentage of interest or dividends earned on money that is invested.
In Financial accounting, a return refers to the amount of profit generated by an investor on an investment over a specific period of time.
Basically, the rate of return which is typically expressed as a percentage of the initial costs of an investment can either be a gain or a loss on an investment. Therefore, a positive rate of return on an investment over a specific period of time, simply means that an investor is making a profit (gains) while a negative rate of return on an investment over a specific period of time, indicates that the investor is running at a loss.
Hence, all issuers of stock expect investors to share in profits and losses because it's largely dependent on the equity and rate of returns
