If a company has like 300 millions outstanding shares and this shares are probably being traded daily in the market, and then the company really does not profit from them, then I asked my above question.
2006-08-28 22:03:12 · 4 answers · asked by kuw mama 59 1 in Business & Finance ➔ Investing
Shares of stock represent ownership in the company, so the company is owned by the people who own the stock. Those people try to run the company for their own profit by making their shares increase in value and/or pay dividends.
Essentially, a company is a money making machine for the stockholders.
2006-08-29 12:51:21 · answer #1 · answered by rainfingers 4 · 0⤊ 0⤋
The shares outstanding are the total number of shares issued. If a company has 300 million outstanding, usually the daily volume will be lower than that.
2006-08-28 22:27:58 · answer #2 · answered by onesmartguy 2 · 0⤊ 0⤋
When a company needs cash, it can offer shares of stock (ownership) to the market, The company gets paid once for this transaction. The company does not profit from any subsequent transactions.
2006-09-03 17:59:58 · answer #3 · answered by Joe H 2 · 0⤊ 0⤋
One of the key attractions for an investor in shares (in public companies) is the ability to sell / buy them rapidly. If you take this "benefit" away - then you would have to pay investors more (the so called "liquidity premium").
2006-08-29 09:56:55 · answer #4 · answered by Ouseman 2 · 0⤊ 0⤋