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Or the company is bought out for cash, as in the case of Dell, or bought by another company for cash and/or shares.
by chris_mahan 13y ago
Or the company is bought out for cash, as in the case of Dell, or bought by another company for cash and/or shares.
- Mikeb85 13y agoNo company goes public with the intention of being bought out. And the entity that's buying the company does so with the intention of distributing the profits (to themselves).
- loumf 13y agoThe difference between a company and a Ponzi scheme is that the company is actually creating some value. It is converting capital into resources, priorities and processes that generate more capital than it gets. At some point it can't convert capital into more capital, so it's better to pay a dividend -- but even if it never does this, it's not a Ponzi scheme if value is being created. A Ponzi scheme never generates more cash than it gets -- it only simulates profits.