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Showing posts with the label surplus capital

Just my thoughts #0785

Olfactory: Charles Spence, the world-renowned scientist who invented gastrophysics, explains that although aging diminishes all human senses, most people believe they would miss sight the most. However, according to quality-of-life indicators and suicide rate data, losing the sense of smell is actually more harmful than losing sight. Even if we lose sight as we age, we can still find comfort in hearing the voices of loved ones and recalling memories. In contrast, when we lose our sense of smell, there is no way to recreate those experiences, and memories of scents cannot be imagined or recalled in abundance. To enrich our lives, we should focus on increasing our scent experiences, as the ability to smell is a key contributor to happiness. - Joseph’s “just my thoughts”

Just my thoughts #0093

A shareholder is the owner of a company. A shareholder is someone who invests capital in a company. There are three ways for shareholders to take money from the invested company: 1) become an executive or employee and receive wages, 2) receive dividends after settlement, or 3) receive remaining assets (liquidation property) excluding debts when the company is liquidated. A third party investing in the company is directly irrelevant to the existing shareholders in cash flow. Despite the shareholder owning the company, there is no way to share the surplus capital caused by the investments among the existing shareholders other than 1) and 2) except for company liquidation No. 3. Let me be clear: receiving an investment does not guarantee benefits for the company. It simply covers future costs and expenses in advance. Capital inducement means increasing the heavy duty of leaving profits, not being given profits unconditionally. - Joseph’s “just my thoughts”