SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Novell (NOVL) dirt cheap, good buy?

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Elmo Gregory who wrote (5408)12/1/1996 12:23:00 PM
From: Chip Rodgers   of 42771
 
Elmo --

>> If you did not participate in the venture capital funding, initial public offering (IPO), or a secondary offering by the corporation, then your money did not go to the corporation: it went to some other stockholder. <<

Right. But as someone else on this thread said, if the "value" (as determined by the stock market) is perceived as being high, then the company can issue shares and raise more capital with fewer shares sold. On the other hand, if share value is low, the company doesn't have as much flexibility to raise more funds because they must sell more shares for less capital (not an attractive option.)

Bottom line, you're trying to paint traded shares as being unrelated to $ value to the company -- in fact, they are very much related. Even though the cash doesn't flow directly from investors to the company, "value" is being transferred from investors to the company.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext