Only for normal people. If you are rich or a company like this you can leverage assets for a rate lower than the rate of return on your investments and come out ahead by financing over paying cash. Rich people don’t pay cash for anything.
Well, in fact it’s not that complicated - shareholders literally own the company - and this ownership results in both the right to decide what happens to the company and receiving dividends, which are supposed to come from the company’s surplus funds. In reality it’s not that straightforward, but that’s the general idea. So if a company spends money, you can think of it as spending shareholders’ money allocated in the company’s assets.
Sorry, I meant the whole idea is simple, but in reality capitalists exploit every single loophole to gain even more money, so there are laws against a lot of stuff - it would be that simple if people were trustworthy.
This will all be financed
It typically costs more money to finance something.
The people buying it don’t give a fuck… it will be repaid by the company they are buying
Only for normal people. If you are rich or a company like this you can leverage assets for a rate lower than the rate of return on your investments and come out ahead by financing over paying cash. Rich people don’t pay cash for anything.
Shareholders foot the bill, ultimately.
Not the subscribers but the shareholders?
I’ll never understand economics.
Well, in fact it’s not that complicated - shareholders literally own the company - and this ownership results in both the right to decide what happens to the company and receiving dividends, which are supposed to come from the company’s surplus funds. In reality it’s not that straightforward, but that’s the general idea. So if a company spends money, you can think of it as spending shareholders’ money allocated in the company’s assets.
Well now I’m really fucking confused.
Sorry, I meant the whole idea is simple, but in reality capitalists exploit every single loophole to gain even more money, so there are laws against a lot of stuff - it would be that simple if people were trustworthy.
Probably both to varying degrees. Neither will I.
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