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To: expat_panama
Correct me if I'm wrong here, but shares of stock in a company are underwritten and sold by a financier, and then sold off into secondary markets. The company offering the stock gets the money up front--it's not dependent upon the day-to-day buying and selling in those secondary markets; i.e., the stock markets.

If the above is true, there is little impact to companies with stock offerings based on what traders might do in the short term.

13 posted on 08/05/2016 5:30:19 AM PDT by Lou L (Health "insurance" is NOT the same as health "care")
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To: Lou L
little impact to companies with stock offerings based on what traders might do in the short term.

That's the line we hear all the time from the left, that Wall Street's a casino that has nothing to do w/ companies that hire workers so we need to jail the day-traders.  It's a crock.

In the first place if stock traders didn't buy shares from underwriters then the underwriters couldn't set up an IPO in the first place.

Next, after a corp's gone public it has to pay attention every minute to their share's prices not only to understand the value of their employee's stock options but also for when the CFO decides between a buy-back or whether to issue new shares.

One other thing to keep in mind is that most corps never sell their shares on public exchanges, and not all of those that do start out w/ an underwriter.  Etrade for example, raised  funds for their IPO by selling $10K blocks to their own customers --an investment that (iirc) doubled in a few months.  A lot of other corps just go and sell direct on the open markets w/ a dutch auction.

This is one of my hot-buttons (you probably didn't notice because of how well I keep it under control) so I need to take a break and breath into a paper bag for a while...

21 posted on 08/05/2016 7:20:15 AM PDT by expat_panama
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To: Lou L
If the above is true, there is little impact to companies with stock offerings based on what traders might do in the short term.

Your misconceptions are probably held by many, if not most, leftists. What you describe is a very old fashion static model of a Corporation just getting started. In today's world, Corporations use their own stock in a multitude of ways.

Almost all non-Private Corporations retain 'issued' stock on their balance sheets. They do this for many of reasons and the amount of shares may vary over time. If the Directors and Executive think the stock value is too low, the Corporation will buy the stock to support its price. They may sell stock to raise cash at a different time. They can reward employees with ESOPs (Employee Stock Ownership Plans) and ISOs (Incentive Stock Options). They hold and buy stock when they think an adversary is attacking their ownership.

22 posted on 08/05/2016 7:23:58 AM PDT by SES1066 (Quality, Speed or Economical - Any 2 of 3 except in government - 1 at best but never #3!)
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To: Lou L

I’m going to assume that she has at least an inkling of this definition and is referring to PE and VC firm ownership and the investment gains on that private stock.

If she was really serious about it she would propose raising the carried interest taxes that hedge fund owners are taxed at. But they all donate massive amounts of money to her campaign so that’s not going to happen.


36 posted on 08/05/2016 12:10:05 PM PDT by Wyatt's Torch
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