On Mon, Apr 27, 2009 at 10:41, Bill Lear <[email protected]> wrote: > On Monday, April 27, 2009 at 10:29:21 (-0400) Max Sawicky writes: >>OK, I'll play devil's advocate. The stock market provides a liquid >>secondary market for stock issues, thereby facilitating the ability of >>firms to raise capital for new investment, among other misadventures.
but, IIRC, doesn't Doug note in Wall Street that few IPOs really raise new funds? Or maybe it's just that only a small percentage of new investments come from IPOs; most are still funded by the company taking out loans. It's been a while. Thus Doug's comment that, > Most companies aren't public, so they don't have a stock price. But there's > no doubt that for public companies, the stock price does affect perceptions > of the firm's creditworthiness. implies that most of the money raised through the stock market is done indirectly, through the loans they can get because they look better on paper. perhaps another stupid question, is the stock market the route most big investors would take if they were trying to, well, invest in a company. Or is there another route for getting a bigger piece of the action. I guess there must be since non-public companies no doubt have investors. In this case, does this outside investment affect stock price in any way? s _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
