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The selling, and buying, of sharres is nothing to do with the company. It is a SECONDARY market.
Let's say you have a company (80%) in which I have a 20% stake.
I sell my shares to another person. He gives me the monetary value and I give him the shares. How does this affect your company? It just has a different shareholder.
Why should I invest my proceeds into the company? I wouldn't have sold if that were the case.
EDIT. It makes no difference if the company is listed or private, a shareholder sells shares and pockets the money. What has it got to do with the company?? If you sold shares and then invested the money back into the company you would get....shares!!
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