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Showing posts with the label surplus capital

Just my thoughts #0724

People say that to succeed, you have to break the frame. But how do you break the frame when you’ve never been locked inside one? Instead, words and actions should be confined within the framework of ‘consistency’ so that the beginning and the end match, earning trust from others. A person grows only when small, essential parts of daily routines are kept within the frame of ‘repetition (routine)’ and the rest are prioritized accordingly. Confining yourself to a specific frame means earning trust through consistency, being recognized for dignity, and developing a routine. This is the process of proving your existence in society. Only after being confined within a frame can you break the big one, elevating life to a new level. That is truly breaking the frame. - 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”