Question

If you buy stock in a corporation and someone gets injured by one of the corporation’s products, can you be sued? Why or why not?

Answer 1

The snappy answer is no, however you will probably pay a cost by the stock going down. This is a brilliant inquiry since it addresses proprietorship. In clarifying offers, it is said and is hypothetically obvious that we are rate proprietors of the company.

The primary motivation behind why an investor can't be sued due to corporate carelessness is that investors are Money related proprietors, not OPERATIONAL proprietors. Frequently, as on account of traded on an open market portions of Facebook, we try not to try and have casting a ballot rights.

In Company Law the Company which a Limited Liability Organization, Is separate legitimate individual from the investors. "Constrained Liability" likewise implies that the investors can't be called upon to meet the obligations that the organization may reached.

The operational proprietors of an organization are ensured by the corporate "cover" which can be pulled aside in a number of ways. The first is by bringing a common class activity suit with different customers who were hurt by the item.

While we can generally trust a partnership will change as the aftereffect of paying out an enormous total after losing a class activity, I can think about a couple of businesses where little change has occurred. Considerably in the wake of losing various class-activity suits, organizations will keep on working in a manner which could hurt the shopper.

Hovering back to your immediate inquiry, the huge payouts for class activities will probably bring about a lower stock cost.

So while investors weren't sued legitimately, a lower stock cost is a circuitous installment.

I trust this answers your inquiry also, make the most of your day.