[The corporation is an invaluable auxiliary to the conduct of foreign affairs by the Government, and] has become an international as well as a nation… - Adolf A. Berle

Where such a separation is complete one group of individuals, the security holders and in particular the stockholders, performs the function of risk-takers and suppliers of capital, while a separate group exercises control and ultimate management. In such a case, if profits are to be received only by the security holders, as the traditional logic of property would require, how can they perform both of their traditional economic roles? Are no profits to go to those who exercise control and in whose hands the efficient operation of enterprise ultimately rests? ...Furthermore, if all profits are earmarked for the security holder, where is the inducement for those in control to manage the enterprise efficiently? When none of the profits are to be received by them, why should they exert themselves beyond the amount necessary to maintain a reasonably satisfied group of stockholders.

Now appears the fourth stage. In this situation emerge the newer mechanisms, the fiduciary institutions, by which these dispersed stockholdings are at once more becoming concentrated.

Major corporations in most instances do not seek capital. They form it themselves.