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bpuharic

On Sun, 09 May 2010 13:26:37 -0400, wrote:

On Sun, 09 May 2010 12:40:36 -0400, bpuharic wrote:

Wall street prices are just the illusion of money.

really? ever sell any stock?

Yes, just last week and because of that I was part of the run on the
market that crashed the value of those stocks.

The fact remains that stock prices are based on what people are
buying, when they sell that "value" quickly disappears.

If there are a million shares of a stock that is selling for a buck
each you could say there was a million dollars worth of value out
there but if somebody actually tried to cash in more than a small
percentage of that stock it would quickly be a 50 cent stock.
In that regard the value is just an illusion.

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

All you have to do is look at a stock like Pets.Com to see that.
That was Clinton's bubble. In 2000 it looked like the economy was
booming but within a few months that booming stock market crashed when
people actually tried to cash in on that boom. The Nasdaq went from
6000 to 2000 in 12 months (Jan 2000 - Jan 2001). That was a crash you
can't blame on Bush.

that's OK. i can blame him for the one we're in now

bpuharic

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

Canuck57[_9_]

On 09/05/2010 3:25 PM, wrote:
On Sun, 09 May 2010 16:27:42 -0400, wrote:

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

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

Some companies do this all the time, I usually try to get out quick if
they dilute the shares. 2 of 3 times they take a hit in less than 6
months after the offering.

--
There is a sucker born every minute, liberals and our politicians are
counting on it.

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.

Canuck57[_9_]

On 09/05/2010 1:45 PM, wrote:
On Sun, 09 May 2010 14:45:59 -0400, wrote:

really? ever sell any stock?

Yes, just last week and because of that I was part of the run on the
market that crashed the value of those stocks.

The fact remains that stock prices are based on what people are
buying, when they sell that "value" quickly disappears.

If there are a million shares of a stock that is selling for a buck
each you could say there was a million dollars worth of value out
there but if somebody actually tried to cash in more than a small
percentage of that stock it would quickly be a 50 cent stock.
In that regard the value is just an illusion.

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.
Companies do hold back stock and call it an asset but that is really
just a bookkeeping trick.
You have guys like Bill Gates who hold most of their billions in
company stock but they can't really sell it without depressing the
price.

I wouldn't call it a trick. Credits == debits, assets == liabilities.
Or the books are cooked. Might be anyways, but that isn't the point.
There is a method to why financials were setup that way to give a more
accruate valuation of what part of the equity is share holders and not
bank/debt. It affects P/E and debt ratios.

--
There is a sucker born every minute, liberals and our politicians are
counting on it.

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