Do companies raising money in the stock market pay capital gains?

Question

Say a company goes public and raises $100 million through issuing stock, do they have to pay the capital gains tax on this?

Answer 1

Not under those circumstances. The are receiving the money, but are giving something (shares in the company, basically part ownership) for the money they receive.

Answer 2

How some link to something that validates your declare. in any different case it particularly is of course without base. and remember approximately in simple terms because of the fact "B" follows "A" on the timeline does no longer advise that "A" led to "B". And your fact that each and each agency on the inventory replace earns extra effective than $250k is in simple terms fake. Ford and GM are the two listed, publicly traded businesses that have been bleeding money for it sluggish now. quite some different businesses are dropping money to boot. intense company taxes are an inducement to take a place in infrastructure, hire workers, and generate new agency lines on account that those expenses will all decrease taxes. in any different case the advantages pass completely to the shareholders, no longer taxpayers commonly. next, agency plans at the instant are not based upon how plenty would be paid in taxes on account that taxes are so volatile. Please learn up on the accounting term "EBIT" and then re-submit your question as quickly as you earnings a ordinary information of ways agency operates. finally, with the debt now exceeding $10 TRILLION, huge tax will enhance are inevitable. in basic terms the main naive those with unquestionably NO financial experience could advise in any different case. while you're drowning in credit card debt, do you're taking a decrease paying interest and value extra necessities to the already overloaded credit taking part in cards? of direction you do no longer! in basic terms an fool could do this. the government is not any diverse from you on that score. If "trickle down" replaced into going to artwork, it could have achieved its magic by skill of now. the certainty that it hasn't is evidence helpful that it particularly is all Voodoo Economics.

Answer 3

No. A corporation issuing stock to get new shareholders to invest is not a capital gain transaction.