Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Do most Corporations make their money by splitting its own stocks and then selling more to the public, or by selling their own products/services to consumers?
Corporations don't make money from stock splits. Occasionally, when a company needs to raise additional capital they may issue NEW shares, which generally dilutes the value of the shares already outstanding.
Do most Corporations make their money by splitting its own stocks and then selling more to the public, or by selling their own products/services to consumers?
They do make money on their (cross out "products" - gone to China) and services.
But you can't stop these dudes from jumping on the finance bandwagon. Everybody else is doing it...er, has done it. Getting hard to do, now!
You seriously don't know the difference between raising capital and making money?
The simple answer to your question is this: your stock will eventually be worthless if your company is worthless. If you don't take the capital raised by selling stock or other securities and turn it into an income stream, your company disappears and the value of your stock drops to zero. People invest in companies because they expect something in return, not because they want it to disappear into a black hole. If the company never has anything to show for the capital they raise, nobody will loan them capital again.
If a company could "make money" simply by raising capital, the dot-com bust never would have happened and every 26-year-old in San Jose would still be getting paid lower six figures to play ping pong and video games all day.
But then why are they so hurt when their stock value goes down
Because when the company's in a bind and needs to raise capital, issuing new shares isn't going to help much when those shares are trading for the price of a stick of gum.
You seriously don't know the difference between raising capital and making money?
The simple answer to your question is this: your stock will eventually be worthless if your company is worthless. If you don't take the capital raised by selling stock or other securities and turn it into an income stream, your company disappears and the value of your stock drops to zero. People invest in companies because they expect something in return, not because they want it to disappear into a black hole. If the company never has anything to show for the capital they raise, nobody will loan them capital again.
If a company could "make money" simply by raising capital, the dot-com bust never would have happened and every 26-year-old in San Jose would still be getting paid lower six figures to play ping pong and video games all day.
Are most people expecting a grand dividend to be paid often when they buy a stock, or do they expect to make money by selling it?
I know a lot of people who only expect money by selling the stock
Also you could "make money" to make your books look great, and then use that to sell more shares, to "make more money"
Isnt that what Enron did, except they lied about how much "money they made"
Are most people expecting a grand dividend to be paid often when they buy a stock, or do they expect to make money by selling it?
I know a lot of people who only expect money by selling the stock
Also you could "make money" to make your books look great, and then use that to sell more shares, to "make more money"
Isnt that what Enron did, except they lied about how much "money they made"
I'm getting confused. Raising cash through a stock offering or by selling bonds or by getting a loan is not "making money". That would be shown as either stockholders equity or a long term liability (depending on which one) on the balance sheet.
If you mean "making money" as the excess of revenues over expenses in a reporting period, that amount would not necessairly be cash flow of the same amount.
Are most people expecting a grand dividend to be paid often when they buy a stock, or do they expect to make money by selling it?
I know a lot of people who only expect money by selling the stock
And what do you suppose makes the value of a stock rise, particularly in the long term? Hint: "selling more stock" doesn't do it.
Quote:
Originally Posted by NJ Chutzpah
Also you could "make money" to make your books look great, and then use that to sell more shares, to "make more money"
Isnt that what Enron did, except they lied about how much "money they made"
Uh, issuing shares of stock doesn't "make your books look great," it just creates a liability to offset the capital you just raised. So I'm not sure what "making your books look great" has to do with the original question. And yeah, Enron is a great example of how to make money by "making your books look great." Worked out real well for the company and its officers. That's why they're still the giant of the energy industry to this day.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
