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Showing posts with the label surplus capital

Just my thoughts #0671

Emotions are a vital asset. They form the raw material of the energy and vitality that drive human action and push life forward. Emotions act both as a tool for expressing one’s personality and as a basis for making important decisions. Therefore, how effectively you typically manage your emotions influences the direction and quality of your life. This is also why positive people tend to be successful. - Joseph’s “just my thoughts”

Just my thoughts #0093

A shareholder is the owner of a company. A shareholder is someone who invests capital in a company. There are three ways for shareholders to take money from the invested company: 1) become an executive or employee and receive wages, 2) receive dividends after settlement, or 3) receive remaining assets (liquidation property) excluding debts when the company is liquidated. A third party investing in the company is directly irrelevant to the existing shareholders in cash flow. Despite the shareholder owning the company, there is no way to share the surplus capital caused by the investments among the existing shareholders other than 1) and 2) except for company liquidation No. 3. Let me be clear: receiving an investment does not guarantee benefits for the company. It simply covers future costs and expenses in advance. Capital inducement means increasing the heavy duty of leaving profits, not being given profits unconditionally. - Joseph’s “just my thoughts”