Economic laws - anyone know any?

[green_man_2010]

It was argued recently in this community that the further one leaned twards the left, Politically, the less one understood the ' realities' of economics

Comments

[green_man_2010]

Oh ? I thought that most companies raised money on the Stock exchange.
If companies do this already, why are stock exchanges still needed?

[tridus]

What if the workers want to sell their stock? Or if the company needs to raise say $200 million, and doesn't employ workers with that kind of money?

When stocks are being invested in by people who want to own part of a company, the stock market is perfectly fine. Where it goes wrong is when you pour trillions into funds from people who don't care where it goes as long as they get a fast return, controlled by managers who don't care about what a company does or how its run so long as the short term profit meets forecasts so they get their management bonus.

[a_new_machine]

Every traded company I've worked for has had an "employee stock purchase program" - basically you put a bit of your paycheck away every month, and at the end of the year, they calculate the lowest sustained average price (lowest 2-week average) and sell you stock based on that. So if you have $200 saved and the stock was $5 a share at its lowest two-week average, you'd get 40 shares.

[telemann]

Depends on the company and the benefits package you have. Buying stock directly from the company with payroll deduction saves you brokerage fees etc. But the amount of stock you can own or purchase can vary greatly depending on the company.

[green_man_2010]

Well, the way it is reported to me, in Japan , firms invite the staff to bank their savings with the company, in return for a decent rate of interest.
now the company has capital to invest, the workers have some growth on their savings and everyone is happy.
Now, if this can fuel people like Nissan , why do they need stocks and shares? or are finances so high that they need workers savings as well as share sales to operate?

[green_man_2010]

maybe beacuae they are relatively few and are dirt poor? Not the sort of description of an employeee for Nissan or Toyota, I suggest.