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[Music] all publicly traded companies have the same basic corporate structure lets look at Eds carpets Eds name is on the building but his company is owned by shareholders and hold stock in the company so he is one of the shareholders if all the shareholders try to manage the company nothing gets done instead they hire a management team to run the company for them this team includes a chief executive officer CEO a chief operations officer CEO oh and a chief finance officer CFO underneath these three there are managers and employees who make sure the carpets are being made and delivered every day the management team cant report to every shareholder so a company Board of Directors is created directors are elected to the board by the shareholders a board is usually made up of a mix of shareholders and management the Lord helps direct the companys management and protects the shareholders investment in the company [Music]