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Mate, what on Earth are you talking about? "Even capital intensive industries could just borrow money from investors" > What do you think publicly traded compan
by anomaly_ 2y ago
Mate, what on Earth are you talking about? "Even capital intensive industries could just borrow money from investors" > What do you think publicly traded companies are?
- deleted 2y ago[deleted]
- Terr_ 2y agoThe most-charitable interpretation I can think of is that the company never sells shares outright (preventing speculation on their value) but only uses them as collateral when borrowing cash from a lender... But that raises questions about why the lender would agree: * If there's no competitive market to sell them on, how does the lender recoup its losses by selling the shares? * If the company is in such a bad place that it can't repay the cash loan, why would the shares retain any value? * Even if the shares entitle you to some portion of the capital that was purchased with the missing cash (e.g. a mine and mining machines) then getting your cash back means you have to work fighting against other shareholders who might not want to liquidate anything.