4 ms·
I don't see why it's not the same (Company gives $200k, issues shares, gets back $100k). 2nd point: GP said "invest 100k/year", thus he do make additional inve
by FullyFunctional 6y ago
I don't see why it's not the same (Company gives $200k, issues shares, gets back $100k).
2nd point: GP said "invest 100k/year", thus he do make additional investments.
- gamblor956 6y agoBecause a liquid asset is different from a liability. And the transactions have different tax, legal, and accounting outcomes. At the simplest level, you can buy things and services with the $100k cash in Scenario 2 at the start of the year as soon as the investment is made. You don't have that cash in Scenario 1.