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There is absolutely value in providing risk capital. That's literally the lifeblood of commercial innovation.
by missedthecue 1y ago
There is absolutely value in providing risk capital. That's literally the lifeblood of commercial innovation.
- steve1977 1y agoBut this only happens when stock is initially offered. Not when it’s traded afterwards.
- DoesntMatter22 1y agoThat is completely untrue. Companies frequently own their own stock, and issue more when the price is high it continues to be quite valuable to the company
- steve1977 1y agoThey can buy back shares and keep them in treasury, that's correct. But they need cash to buy them back first and it only actually results in a positive flow of money if they are able to sell it at a profit later. And when they issue more, then this initial offering again (of new stock).
- DoesntMatter22 1y agoWe are responding to somebody who said the shareholders do not provide value. Which is just obviously incorrect