somebody that is well versed in stocks can come in here and answer a couple questions?

[MikelArteta]

Stocks is like gambling you never know

 

[Remote]

@Raul so its up to the company itself to determine how many shares are available

I'm not exactly sure how that is determined. I would imagine so, but there probably is some counseling body that works with the company to determine how many shares to put out there, or when to split the stock price...that sort of thing.

I really just have a general understanding of how it works. Maybe others can speak to some of the finer details.

 

[Brandon M.]

Stocks is like gambling you never know

im just really interested in how the whole thing gets set up.

i see apple's initial share price was 22 bucks per share in 1980 and now its 520 per share

 

[GatorStaceyAdams]

I'm not exactly sure how that is determined. I would imagine so, but there probably is some counseling body that works with the company to determine how many shares to put out there, or when to split the stock price...that sort of thing.

I really just have a general understanding of how it works. Maybe others can speak to some of the finer details.

Firms issue shares when they are looking to raise money- for any reason. Thats what investment banks do- they basically advise and exceute these transactions for companies....

Lets say a company is looking to began a new venture in a new country and needs an additional 10mm in funding. If they feel that their equity is overvalued (at the higher end of the price spectrum), they will issue shares to attain the 10mm. As you would imagine, this will dilute the value of current shareholders- depending on the amount the firm intends on issuing

 

[Remote]

Firms issue shares when they are looking to raise money- for any reason. Thats what investment banks do- they basically advise and exceute these transactions for companies....

Lets say a company is looking to began a new venture in a new country and needs an additional 10mm in funding. If they feel that their equity is overvalued (at the higher end of the price spectrum), they will issue shares to attain the 10mm. As you would imagine, this will dilute the value of current shareholders- depending on the amount the firm intends on issuing

That makes sense.
But I have to think that the shareholders are willing to accept the dilution if the longterm outlook seems positive.

 

[philmonroe]

im just really interested in how the whole thing gets set up.

i see apple's initial share price was 22 bucks per share in 1980 and now its 520 per share

shyt before jobs came back they were like 8-10 a share. If your serious get books like one up on wall st by Peter lynch and google some more in depth stuff than you probably would get here

 

[GatorStaceyAdams]

That makes sense.
But I have to think that the shareholders are willing to accept the dilution if the longterm outlook seems positive.

Exactly,

So they issue shares and dilute your market value for this 10mm project. But the goal is that that 10mm project ends up being a 100mm business (like Apple with the IPAD). Thats why its imperative to be diligent evaluating management. Almost all these firms will try to raise equity if possible (rather than debt), you want to make sure they are using the money to build $$$ business e.g. you want your money being used to create Ipod's, not Zunes (btw Im not a fan of AAPL at these levels)

 

[Remote]

Exactly,

So they issue shares and dilute your market value for this 10mm project. But the goal is that that 10mm project ends up being a 100mm business (like Apple with the IPAD). Thats why its imperative to be diligent evaluating management. Almost all these firms will try to raise equity if possible (rather than debt), you want to make sure they are using the money to build $$$ business e.g. you want your money being used to create Ipod's, not Zunes (btw Im not a fan of AAPL at these levels)

Interesting stuff, man.

 

[illadope]

DONT buy money in Mollywatr. Thats all you need to know.

 

[Brandon M.]

up

 

[Serious]

http://www.thecoli.com/threads/boiler-room-the-official-stock-market-discussion.28619/