• Paladin of the Pegasos
    Paladin of the Pegasos
    Posts: 1423 from 2003/4/13

    Yasu wrote:

    I don't think there is a law against being not profitable. If it is a share holding company all the company need to do when it's out of cash is to ask it's share holders for more. Because then the company is only accountable to it's shareholders and if they think it's a good idea to invest more money it's perfectly legal. Which is what I think the presumably main shareholder Trevor does.

    Remember the IT bubble? The share holders kept pouring in money into hugely unprofitable companies because they thought one day in the not too far future it would pay off. And most of the companies went belly up once the share holders realised that their "multi billion dollar companies" was worth about as much as a hot dog stand. The share holders had to take the knock-back because it was up to them to decide whether to invest more and more money into it or not. The only thing the companies had to do was not to lie about its revenue.

    Perfectly legal.

    That's not how it works, you are confusing privately owned companies with publicly trading company. A-Eon shares are 100% distributed between 3 officers, there are none left in the treasury to sell. A publicly traded company such as those during the Dot-com bubble sold shares during an IPO, and held a majority of shares in the treasury. When these dot-com companies needed more funds they would issue "secondaries" by taking shares from the treasury and selling either directly into the market or 2 a 3rd party at a discount. There is a world of difference between a public and a private company.

    Trevor can "loan" A-Eon cash, but that loan is supposed to be repaid at some point. This is not something that can happen forever, at some point A-Eon will have to be profitable.
  • »10.03.16 - 13:58