InvestorQ : what dog goodwill give ans pls
Anurudra made post

what dog goodwill give ans pls

Answer
user profile image
priya Shah answered.
1 year ago


Dogs are always treated as a loyal pet and follow the owner and not the place where they reside. The same case goes with the company shareholders or the well-wishers. This is what called as "Dog goodwill" in the stock market business.

The investors are attached to the persons rather than the Business run by them. Investors treat them as a family member. They resemble that the company is growing because of a specific individual person.

You can take an example as "Dhoni" as a captain for an IPL team. The followers of Dhoni will always like the team, where "Dhoni" represents captain of such a team. I request everyone not a take as any offense. This is just an example of explaining a concept.


user profile image
K V RAO answered.
1 year ago


No doubt Dog goodwill pertains to a single promoter who is behind the company for all good reasons. This is head side of a coin . Tail side is the risk associated with single person. There is no team or dependable heirs or the promoter himself has not developed capable successor. What happens if that single promoter dies or falls sick? No person is indispensable in a corporate situation. The company promoters have to groom their successors. There are a number of cases on this issue.