> -- > When shares are issued, those shares need some independent > authority to check that the business exists, that the owners > are not looting it, and so forth. That authority does not > have to be a state or state sponsored, but right now non state > sponsred institutions to perform this task are very weak. >
You can do without this authority, at least that's what this company is choosing, but it has consequences of course. In the absence of any guarantee or control by an independant body (goverment or other), investors will demand a certain (high) risk premium before they subscribe to such ipo As result TGC has to offer the shares at a much cheaper price than they could do if this extra risk for the investor was not there. They could probably issue the same shares at 200 gg with a 3.6% annual dividend, if they were under control of a reliable third party governing body. So, what is ordinarily lost in taxes and other costs, now is lost as a risk premium you have to offer to the investors.. But, it's their choice and the people investing in these shares also know what they are doing. So I don't agree that an independant authority is always needed to check these shares. If TGC decides to pay up for it , and the investors agree with the extra risks... ok My neighbour wants to go to the prostitutes without condoms and he has to pay much more for it.. But if both parties agree on it, who am I to say that they should use condoms? Regards, Danny --- You are currently subscribed to e-gold-list as: [EMAIL PROTECTED] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
