BoatBanter.com - View Single Post - economist blames wall street for collapse

BAR[_2_]

In article ,
says...

On Sun, 09 May 2010 16:27:42 -0400, bpuharic wrote:

On Sun, 09 May 2010 15:45:39 -0400, wrote:

On Sun, 09 May 2010 14:45:59 -0400, bpuharic wrote:

really? ever sell any stock?

hmm...it seems you dont know WHY companies are even ON wall street.
they are there for capitalization....looking for money to invest in
their companies. if wall street drops by a trillion, their
equty...their ability to raise money...drops by a trillion

Perhaps you are the one who doesn't understand how stocks work. When a
company offers shares they get all the money they are going to get
right then. After that the stocks are just baseball cards that trade
without the company seeing another dime. They can sell more stock but,
again, it is a one time shot.

stock is fungible. companies can, and do buy and sell their own stock.
and their ability to raise MORE equity is affected when the stock
price drops

Certainly a good stock price garners a better market for selling other
instruments but it does not directly affect the corporate revenue.

However, it is used like cash to acquire assets and it is used to assign
value to the company when its assets are sold. Therein lies the value
of stock and the reason that companies are concerned about the stock
price.

Buy a company in an all stock deal and the acquired company's revenue
adds to the acquiring company's bottom line.