2006-10-23 05:00:06 · 5 answers · asked by oracle 5 in Business & Finance ➔ Investing
Think about it this way. People buy stock in a company so they can have that partial ownership and make some money (either thru dividends and/or stock growth). A not for profit company would not allow the stock owner to make money. There would be no one willing to trade the stock and it would sit there on the market without any activity. People who bought the stock would most likely be donating their money to the company since most non profits rarely have a large reserve of cash to buy back outstanding stock. There are easier ways to donate money to a non profit.
2006-10-23 05:09:50 · answer #1 · answered by A.Mercer 7 · 0⤊ 0⤋
generally speaking companies that are not-for-profit should not be traded on the stock exchange. However, there are quite a few that are traded that I have serious doubts that they will ever make a profit. Among those are SIRI and XMSR.
2006-10-23 13:47:26 · answer #2 · answered by Anonymous · 0⤊ 0⤋
No, stocks value is derived from anticipated dividends (profits to be paid to stock owners)
2006-10-23 12:03:32 · answer #3 · answered by Anonymous · 0⤊ 0⤋
No, because in order for your company to be publicly traded there needs to be income that you can report to shareholders.
2006-10-23 12:03:30 · answer #4 · answered by gatesfam@swbell.net 4 · 0⤊ 0⤋
no it cant.
2006-10-23 13:33:13 · answer #5 · answered by slimshady3in 4 · 0⤊ 0⤋