Answer to Question #71308 in Microeconomics for Edgar
I had an inquiry about stocks and bonds. Do sole proprietorship and partnership have the ability to sell or buy socks as well as bonds? Or could only corporations do that.
Unlike publicly held companies, sole proprietorships are not traded in the sense of stock offerings and equity investments. A sole proprietorship, by definition, is owned by only one person; once such an ownership arrangement changes, it is no longer a sole proprietorship. If another individual takes on some of the ownership of the company, then the business will be changed to a partnership. In the context of business ownership, the term "trading" usually refers to buying and selling stocks and bonds. So, a sole proprietorship as well as partnership can't technically be traded and don't have the ability to sell or buy stocks as well as bonds, because only corporations do that. Reference: http://smallbusiness.chron.com/benefits-sole-proprietorships-trading-36565.html