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It’s not that deep. The basic premise I’m putting forward, which is that in general investing in an company might have the potential to help that company succe
by CPLX 5y ago
It’s not that deep.
The basic premise I’m putting forward, which is that in general investing in an company might have the potential to help that company succeed, is utterly trivial and obvious.
Also trivial and obvious is that fact that an excessive debt burden can cripple and kill a company that might have otherwise succeeded.
There is indeed subtlety to this, needless to say. But basic observation is essentially unarguable: when a whole ton of people decide to buy stock in a company it affects that company’s prospects.
- hogFeast 5y agoCorrect. Lots of people bought into the stock at a valuation in excess of fundamental value, bankers saw an opportunity, equity holders got rinsed, and debt holders got paid in full immediately on a junk credit.