Stock of the Day
Stock of the Day
Out of context: Reply #478
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- _niko2
Just wanted to continue my thread from a couple of posts up and thank nb and mono for their input.
Imagine being on Dragon's den or Shark tank and you pitch to the investors. They love your idea and are willing to give you a ton of cash for a portion of your business. Company makes money, dragons make their proportionate cut, everyone happy.
Now imagine if instead you say "instead of giving you a direct piece of the company, I'll issue you shares. now these shares won't give you dividends or any profit sharing and I never have to buy back those shares but hey, you can trade them amongst your dragon friends or your buddies"
They would laugh you off stage no? But isn't this how the stock market works?
- what market do you belong to? i bet they'd take your stock off if you were a publically traded company.hotroddy
- Well what you describe is kind of like what they offer on shark tank, except they aren’t publicly traded companiesnb
- So, no, they wouldn’t laugh you off the stagenb
- Also Shark Tank is a TV show and does not represent realitynb
- Yeah for sure just using it as a simplified analogy obvious public companies are not shark tank but it seems that they raise funds but offer nothing in return_niko
- Its funny is that I run with the director of the securities and exchange commission 3 days a week yet here I am on a design forum taking shit from hotroddy lol_niko
- I’m pretty sure when I ask him he’ll pull me aside and say “mate, it’s just a big Ponzi scheme” :)_niko
- @_niko i think you must first meet certain conditions before you can think about getting listed + that's why shares have classes.sted
- &u know what ROI is and how it works?sted
- @niko, I've played golf with Arthur Levitt :)hotroddy
- and I don't quite understand it myself.hotroddy
- when you own shares you actually own part of the company and to me that seems more tangible than money. What is money but an exchange of trust.hotroddy
- You’re welcome. And yes that’s how it works. They sell stock to the public and people trade it among themselves. That’s it.monospaced
- If a company conducts a “buy back” it lowers the amount of available stock and usually increases price of remaining stock in the wild.monospaced
- Supply demand etc.monospaced
- The dream goal of any shark from shark tank is to be so successful with their business they can offer shares publicly.monospaced
- You ‘own a piece of the company’ except your ownership is subservient to bond holders and other secured creditors who own the company’s debt.monNom
- So your ownership is contingent on the continued functioning of the company as a going concern. If it runs into hard times, you go to zero. creditors get paid.monNom
- Stock market is a scamGnash
- Not if you invest responsibly.monospaced