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Showing posts with the label surplus capital

Just my thoughts #0598

The definition of ‘virtual’ in the dictionary refers to a presumed existence or subject that is treated as if it does not exist in reality. However, in contemporary usage, ‘virtual’ describes something that cannot be physically sensed by human beings. For instance, ‘virtual currency’ exists in the form of bits, as it cannot be perceived sensibly. Just because you can’t feel it doesn’t mean it doesn’t exist. In fact, human senses cannot detect the smallest unit of atoms that compose all things, yet that does not negate their existence. If something that does not exist but can exist as a hypothesis is called ‘virtual,’ then it exists in reality as a concept as soon as it is assumed! When something is hypothesized, the entity that is assumed originally did not exist, and the subject who made the assumption had not existed from the beginning, thus proving its existence by expressing the will of that assumption. Therefore, distinguishing between virtual and real holds no ontological signifi...

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”