Quote:
Originally Posted by qed  I am sure you are aware of this (doesn't sound like it though), but just to be clear, the money is made when the shares are first offered to public. Any further trading between individuals have no value to the company.
To get more money, the company needs to issue more stock |
Which is what I said
"to raise new money by issuing new shares" so yes I understand how that works. I am sure you are aware of this (doesn't sound like it though), but just to be clear, corporations issue private placements (new shares issued to large investors and banks--not the public) all the time after the IPO (initial public offering). They get real dollars for the shares purchased through the private placements. it is cash straight into the bank account. And that can be one heck of a benefit to spur further growth.
You said:
"Capitalism has its pluses for sure, but it has some serious drawbacks for certain boundary conditions. It promotes perpetual growth instead of sustainability which is what we really need to solve some of our major problems on this planet."
All I can say to that is, I am all for the perpetual growth of industry with a social conscience. I am all for the unrestrained growth of medical science, space exploration, green industry, computer science, and the arts. If it weren't for some of the major corporations we wouldn't have the philanthropy that we now have to help deal with those problems you speak of. Think Gates and Buffett as examples. The list is endless. Taking the good with the bad, on balance I think capitalism is working. Don't confuse capitalism with politics.
Cheers,
John
Paintings of British Columbia - John Rocheleau