Buying a share
Buying a business that is worth $10,000 shouldn't be that much and for most people it is within range of their investment budget. But what if the business you're trying to acquire is worth way more than that? say, $100,000. At this amount, not a lot of people could afford it. A proprietor selling his business entirely to just a single buyer would take forever since the total demand at that price level is decreased noting the average capital risk of the public is not within that range.
The Illustration above shows assets of the people interested in buying a business. Since most of them could afford the tire shop that has a value of $10,000, it could be sold in just a matter of time. Tire shoppe on the right is more profitable since it has more equipment, it can accomplish a task faster than tire shop 1 resulting in a much bigger customer base, your only problem is it is worth a lot more than tire shop 1. But what if you could own tire shoppe (to the right) for just $10,000? wouldn't it be nice? All we got to do is pitch in some money as a group and we would own a portion of that business, putting in more money gives you a bigger share of the business and gain considerable control of it!
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