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Showing posts with the label surplus capital

Just my thoughts #0609

The reason the human brain is more complex and sophisticated than that of other primates is to facilitate the establishment of social relationships. The brain develops through the senses, and humans must experience them to sense. Without experience, the human brain cannot perceive. All social experiences contribute to the development of a social brain. The broader the relationships, the more socialized the human brain becomes. Through experience, the human brain can compare and organize information to communicate effectively with other brains. To empathize, we mirror the brains of others. Who we are with is also neurologically essential. - 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”