Do stock company's have a limit on shares?
2006-12-08 12:24:02 · 5 answers · asked by mikejonesg2132 2 in Business & Finance ➔ Investing
During the Initial Public Offering (IPO), yes, a company decides how many shared they want to offer the public. A company can decide to have 1 million shares go public at $1 each or 100,000 at $10 each. It all depends on how much money the company wants to raise and expand as a working business going forward.
As an individual investor, you don't get the IPO shares at the IPO price unless you have over someting like $1 million in your account. You are forced to buy them on the open market (usually after they've had a HUGE run up). But when Burger King went public earlier in the year, you could have bought it near the IPO price because there was no demand for them. I bought Burger King at $13 (also NOK at $13) and they've done very well for me!!!
2006-12-08 12:58:06 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Yes
2006-12-09 14:35:53 · answer #2 · answered by denxxchua 3 · 0⤊ 0⤋
Companies must issue shares. However issuing shares will dilute the value of the existing shares so it is not widely done. This is the cause of the contrversies about options, where companies are issuing often excessive amounts of shares to executives.
2006-12-08 12:28:49 · answer #3 · answered by VATreasures 6 · 0⤊ 0⤋
Yes.
2006-12-09 07:12:27 · answer #4 · answered by Anonymous · 0⤊ 0⤋
YES
2006-12-08 22:50:52 · answer #5 · answered by Anonymous · 0⤊ 0⤋