• Kecessa@sh.itjust.works
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    9 months ago

    If they lose the shareholders? That only means shareholders are seeking their shares, they go to another shareholder or are getting bought back by the company… If everyone is selling then the share price is driven down (too much offer) and the company might end up getting delisted from major exchanges, it doesn’t mean they don’t make a good product or whatever, but if everyone is jumping ship then there usually is a reason for it…

    The company makes profit from shareholders only when it’s their own shares that they’re selling or when new shares are being bought, so initial offering, subsequent offerings (increasing the total number of shares that exist, current shareholders might not appreciate it). Going back to being private after finding success (buying back all the shares on the market) is usually so expensive that it’s not something the company will consider doing, especially at that means depending on private investments to raise capital instead of being able to simply sell shares owned by the company or emit more shares.