Burying Your Company's Stock

2024-01-03T23:57:53Z

V2gcbse065: Новая страница: «You must bury the [https://www.fxcm.my/cara-beli-saham-cfd/ https://www.fxcm.my/cara-beli-saham-cfd/] shares of your public company to reduce its float. Your inve...»

You must bury the [https://www.fxcm.my/cara-beli-saham-cfd/ https://www.fxcm.my/cara-beli-saham-cfd/] shares of your public company to reduce its float. Your investor relations costs will be lower if your public company has a lower float. [See my article on the proper use of shares.] The buried shares will be deducted from the float, and the remaining amount is the effective float. Your goal is to reduce the effective float to as near zero as possible. If your effective float is zero, you need not find buyers for your float because there are no shareholders selling their stock in your company. This, of course, is the ideal situation. If you want your company to be successful in every aspect, I recommend that you structure the float of your company this way.

Speculators are not investors

American stock buyers, on the whole, are speculators, not investors [http://www.iht.com/articles/529443.htm]. They buy stock with the hope of quickly selling it at a profit. Even the U.S. government realizes that speculating does not lead to economic growth. Taxes for stock buyers willing to hold their shares for at least one year are less than for those who speculate in the Market and quickly sell their stock. Tax incentives from the American government have not changed the speculative nature in the U.S. Market because long-term investors continue to lose money. I've always wondered why long-term investors buy and hold stocks in this manner.

Avoiding Your Shares Being On The Market

I have been involved in the North American stock market for over 20 years and can confirm that professionals make more money by selling shares short (betting on the fall of the share price or the bankruptcy of the company) than by purchasing shares. The textbooks only list one of over two dozen of ways that professionals use to sell short stocks. I have written an article on shorting shares that includes 24 ways. The only effective defense to short selling is to ensure that the Depository Trust Company (DTC) in New York doesn't have any of your company's shares in their possession.

Most people who buy shares do not take ownership of their share certificates, but rather leave them "in Street Name". "In street name" simply means they are all turned over to the DTC for safekeeping. Short sellers rely or "borrow" street stock in order to sell shares that are not present on the market. Public short sellers expect to pay the "borrowed" shares back at the much lower cost when the stock collapses. Professional short sellers never expect to buyback the nonexistent shares and legally avoid U.S. taxes on their profits in doing so. Your company cannot be sold short if the shares can't legally be borrowed.

If you can prevent your shares from being sold on the DTC by having your shareholders insist that they receive their certificates in person, then your company has a Cash Market. Few companies are aware of the dangers that short sellers pose. Brokerage firms and the DTC work very hard to make it extremely difficult to create a Cash Market in any stock.

JD Edwards E1 - Вклад участника [ru]

Burying Your Company's Stock