If I have equity in a company, can I receive passive income from it?
I'm about to receive equity in a company. Let's say I get 10% ownership. Does that mean that if the company makes 0 in profit every month, they have to give me ?
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No. Some profits could (and should) go to retained earnings.
You will only received income when it is distributed to shareholders. It happens when the owners decide it should happen.
Keep in mind that in the case you cite, 0 profit is made and held as retained earnings, the company's value increases by that 0. Your net worth would increase by as you own a more valuable company.
With privately held companies things can be a bit dicey depending upon the ownership.
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