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you can raise capital by selling more shares. This allows you, as a business, to not have to turn a profit and still be in business.
by maneesh 9y ago
you can raise capital by selling more shares.
This allows you, as a business, to not have to turn a profit and still be in business.
- marak830 9y agoThat's not a profit. Thats temporary extra funds. A profit is performing a service that costs you less than you charge the client.
- thedufer 9y agoTemporary extra funds are exactly what you'd want if you saw that conditions were right to open a factory you couldn't afford, for example. Your shareholders are people who would like to take on the profit (and risk) of such an investment. This works in everyone's favor.
- hugecynic 9y ago> That's not a profit that's exactly what he said. to not have to turn a profit yet remain in business.