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Showing posts with the label surplus capital

Just my thoughts #0641

The cultural differences between the East and the West sometimes stem from the natural environment, but they are generally believed to arise from differences in thinking. In other words, Asians tend to understand relationships and similarities by grasping the context of certain events and situations, while Westerners often focus on rules and categories by concentrating on objects. Therefore, Asians believe that even beings far apart influence each other, and Westerners believe that a certain phenomenon occurs only when they are in direct contact. However, the irony is that the West, not the East, has communicated over long distances using invisible magnetic fields or radio waves. The consistency of phenomena does not always produce the same results as expected. - 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”