0
Let's say a company needs a lot of money to expand the business so instead of getting a bank loan for 1 billion dollars they decided to go public and hire an underwriter (like Goldman Sachs) to assist in determining how to go about raising 1 billion dollars via issuance of stock to the public.
Once the stock (company shares) go public then the company and Goldman Sachs gets a piece of the money pie and both companies go on their merry way while average joes like us buy and sell the shares among each other which really doesn't do anything for the company because the company already has what they want (1 billion dollars).
It's a very long explanation because you also have to consider that company executives have stock options + stock buybacks, etc. You can go to Investopedia.
What else can I help you with?
Where can you find some guidelines for trading stocks?
A professional investment adviser could help answer your questions on trading stocks. Alternatively, taking a class or short course could help you understand the guidelines of trading stocks.
Can trading stocks harm our economy?
The simple act of trading stocks cannot harm our economy. The unethical or impractical practices of the business that are traded are what can potentially harm our economy.
What companies will help a person learn about day trading for stocks?
Investopedia will help a person learn about day trading for stocks. They have a very strategic plan for helping beginners learn the ins and outs of day trading.
Where can one learn about day trading penny stocks?
You can learn about day trading and penny stocks from various finance websites. You can also contact a dedicated agent who will be happy to help you with your problems.
What is the meaning of DEMAT in business?
DEMAT accounts means Dematerialised account need for trading and holding of stocks...
What are the basics when it comes to learning stock trading?
"BNET is a great business resource to use in looking up product information and services. This site will offer information on stock trading, including the basics and help to determine which stocks may be right for you."
What are stock trading companies?
Stock trading companies are business that profit offer the buying and selling off stocks and similiar investments. They can be local offices and/or internet based.
What has the author Alexander Elder written?
Alexander Elder has written: 'The Complete Trading for a Living' 'Financial Trading' 'Sell and sell short' -- subject(s): Investment analysis, Speculation, Stocks, OverDrive, Business, Finance, Nonfiction 'Rubles to dollars' -- subject(s): Economic conditions, Investments 'Entries & exits' -- subject(s): Investment analysis, Stocks, Futures, OverDrive, Business, Nonfiction 'Vivir del trading / Trading for a Living'
Where can one find information on day trading stocks?
Day trading stocks is one of the most common ways to 'play the stock market'. It requires business knowledge and know-how to trade stocks without losing money, so anyone who is interested should consult financial sites such as Investopedia and Stock Traders Daily.
Do you typically buy at the bid or ask price when trading stocks?
When trading stocks, most people buy at the ask price.
Where can one find information about best stocks commodity?
Information about the best stocks commodity can be found on Investopedia, Traders, Bloomberg, Business Week, Bar Chart, Nasdaq, Trading Charts and Seeking Alpha.
How do you short stocks?
how to short stocks
