Rachel worked in one of her family's two furniture stores. When her grandfather decided to expand the business and
build three more stores, Rachel realized that he would need
a lot of capital to get the construction started. She
suggested that her grandfather raise the money by selling
shares of stock in the company to just a few people, not to
the general public. Her grandfather filed Articles of
Incorporation with the government. He sold 1,000 shares
of stock to 100 people and kept 1,500 shares.