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Showing posts with the label surplus capital

Just my thoughts #0754

Traditional education taught that human economic development progressed from hunting to stock farming and then to agriculture. However, the only real difference is that stock farming is an economic method of obtaining food by domesticating livestock, while agriculture involves domesticating plants. Therefore, this three-stage development theory is no longer accepted. Instead, the development of human civilization can be seen in the evolution of transportation. To understand the nature of how the world changes, we should observe the development of transportation. The increasing speed of movement is the main evidence that society is changing rapidly. - 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”