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> load the company up with debt and pay yourself a nice dividend I am new to this. Doesn't a dividend come from profits? What profits are there if you need deb
by danuker 3y ago
> load the company up with debt and pay yourself a nice dividend
I am new to this. Doesn't a dividend come from profits? What profits are there if you need debt? And who will loan to you if your business plan is to exit scam?
- lmm 3y ago> Doesn't a dividend come from profits? A dividend can be paid with money from any source, it's all money. > And who will loan to you if your business plan is to exit scam? Ambitious junior bankers. Or you get the government to guarantee your debt.
- scott_w 3y ago> What profits are there if you need debt? And who will loan to you if your business plan is to exit scam? If you’re a water company, after government bailed out the banks, chances were good you’re not going bust. What are they going to do? Let the entire population of London die of dehydration?
- toyg 3y agoAnd since a lot of investors in large utility companies are international, should the government somehow not make them whole (or worse, just expropriate), there would typically be repercussions - with international arbitration courts adjudicating reparation with processes that are typically stacked in favour of businesses. It's a sham market.
- scott_w 3y agoI just explained the thought process, I never said it was guaranteed to hold true.