The stock market produces nothing. Most people don't think about that. Why do companies buy back their stocks? Because Wall Street is good for them? No Because Wall Street WAS good for them.
AND.
Wall Street can be good for them again because they squandered their tax cut money.
An IPO is "Initial Public Offering." Think about that. What is the name of that show I never watch? Ahhhhh. Oh, yeah, "Shark Tank." Interesting name. Like swimming with the sharks? Most CEOs don't, but, accept that reality.
Look, companies draw up an IPO because they need/want liquid capital. They open with a share price. Right? The company's CEO has to maintain its stock price or increase it. It is a lot of responsibility. It also adds risk to the company. It is a roller coaster and jobs depend on it if working for a company on the financial markets.
Family owned companies like Trump company, Koch and Walmart do not have IPOs but have their own liquid assets every day; casinos, petroleum and consumers. They pay the least of most companies. They provide the worst employee benefits because the profits are not issued with others, only the family.
So when a company, like GM or Ford, have a product to sell in large numbers there should be a modest income for stockholders. But, stockholders aren't happy with modest AND CONSISTENT earnings from the sale of cars and trucks. They want to be mad happy and that pushes CEOs to extend profits to be a multinational company and make hideous decisions like producing their vehicles in other countries because the labor market is dirt cheap. It wasn't always like this. Greed was a ridiculous idea.
If the stock markets completely failed. GLOBALLY FAILED. The brick and mortar would still be there. The CEO would still be there. The ability to manufacture would still be there. Cars and trucks would still be produced. Car dealers would have the challenge to find financing because the banks would be broke, but, if the system reset, the car dealers would MAKE A NEW VALUE of the cars on their lot and find a way to sell them anyway. CASH FLOW. That is the thing that keeps the USA economy running, not Wall Street.
Cash flow. How much of the USA cash flow does Wall Street receive everyday?
Indeed. "Shark Tank."
March 19, 2020
By Ben Winck
US stocks gained (click here) on Thursday as investors responded to additional stimulus efforts from governments and central banks.
AND.
Wall Street can be good for them again because they squandered their tax cut money.
An IPO is "Initial Public Offering." Think about that. What is the name of that show I never watch? Ahhhhh. Oh, yeah, "Shark Tank." Interesting name. Like swimming with the sharks? Most CEOs don't, but, accept that reality.
Look, companies draw up an IPO because they need/want liquid capital. They open with a share price. Right? The company's CEO has to maintain its stock price or increase it. It is a lot of responsibility. It also adds risk to the company. It is a roller coaster and jobs depend on it if working for a company on the financial markets.
Family owned companies like Trump company, Koch and Walmart do not have IPOs but have their own liquid assets every day; casinos, petroleum and consumers. They pay the least of most companies. They provide the worst employee benefits because the profits are not issued with others, only the family.
So when a company, like GM or Ford, have a product to sell in large numbers there should be a modest income for stockholders. But, stockholders aren't happy with modest AND CONSISTENT earnings from the sale of cars and trucks. They want to be mad happy and that pushes CEOs to extend profits to be a multinational company and make hideous decisions like producing their vehicles in other countries because the labor market is dirt cheap. It wasn't always like this. Greed was a ridiculous idea.
If the stock markets completely failed. GLOBALLY FAILED. The brick and mortar would still be there. The CEO would still be there. The ability to manufacture would still be there. Cars and trucks would still be produced. Car dealers would have the challenge to find financing because the banks would be broke, but, if the system reset, the car dealers would MAKE A NEW VALUE of the cars on their lot and find a way to sell them anyway. CASH FLOW. That is the thing that keeps the USA economy running, not Wall Street.
Cash flow. How much of the USA cash flow does Wall Street receive everyday?
Indeed. "Shark Tank."
March 19, 2020
By Ben Winck
US stocks gained (click here) on Thursday as investors responded to additional stimulus efforts from governments and central banks.
The Dow Jones industrial average moved back above the 20,000 threshold it breached in Wednesday's session. The rally followed new aid measures from the White House meant to keep businesses and families afloat as the US faces a heightened risk of recession....
