But then, why do so many companies still prefer to have a multitude of shareholders?
Truth be told, it all boils down to benefits. Take an entertainment company, for example. You need connections with television stations, right? So, you have to seek out resources in that area and then relinquish a portion of the benefits—namely, shares. That's how you get others to play along, so everyone can make money together.
By the same token, if you want to establish a foothold somewhere, you must offer up sufficient benefits. After all, trying to hog all the profits is the biggest taboo in this circle; nobody likes it, no matter where you go.
Consider big-name stars and directors joining your venture. If you don't offer shares, who's going to sign on? Even if they did, if they're getting paid the same regardless of effort, everyone would be tempted to slack off. After all, their pay wouldn't decrease.
