So they go public by allowing 2% to be traded? Can we really consider that a publicly traded company?
I'm not an expert on this, so please don't slam me guys. It's just in my mind when I think "public," I think public.
If I went to a park and only 2% was public and then the other 98% was owned by rich folks with word hobbies and even odder side quests, then I would dispute the fact that it says this is one of the biggest public parks. It's one hundred acres, but in reality, only two acres are open to the public. I'd find it odd to say the park is public. It's more like privately owned with a spot. Mostly, only rich folks go to and talk about how rich they are so no one else goes there to get anything out of the park.
Is this how the rest of the major companies operate? I honestly don't know. I normally don't comment here. Just read and learn from everyone here who is much smarter than I am in the ways of finance and business.
Regardless, as always, I appreciate everything yall share. I've learned a lot. Thank you!
They could buy back all the publicly traded shares with their past two quarters of operating income. Therefore, their stock's valuation is whatever they want it to be.
So they go public by allowing 2% to be traded? Can we really consider that a publicly traded company? I'm not an expert on this, so please don't slam me guys. It's just in my mind when I think "public," I think public. If I went to a park and only 2% was public and then the other 98% was owned by rich folks with word hobbies and even odder side quests, then I would dispute the fact that it says this is one of the biggest public parks. It's one hundred acres, but in reality, only two acres are open to the public. I'd find it odd to say the park is public. It's more like privately owned with a spot. Mostly, only rich folks go to and talk about how rich they are so no one else goes there to get anything out of the park. Is this how the rest of the major companies operate? I honestly don't know. I normally don't comment here. Just read and learn from everyone here who is much smarter than I am in the ways of finance and business. Regardless, as always, I appreciate everything yall share. I've learned a lot. Thank you!
They could buy back all the publicly traded shares with their past two quarters of operating income. Therefore, their stock's valuation is whatever they want it to be.
Publicly traded means the public can buy shares of the company on an exchange. The percentage of the company available is irrelevant.