But people aren't buying the stock from Avid, except for shares originally issued by the company or additional shares issued later. Shareholders are buying existing stock owned by people or funds or companies that have already purchased stock. For the most part, it's an exchange between shareholders, which doesn't really affect Avid one way or another in any real sense.
Granted, poor stock performance affects the company in other ways because it affects perception. And of course, when new stock is issued, a low value means the company gets fewer funds to fuel expansion. Finally, if stock value is so low, a takeover is possible by someone buying up enough available shares to own the company. In some cases, the company's value in stock is far below its actual value in assets, which is typically when you see takeovers occur.
Oliver
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Posted by: oliverpeters@oliverpeters.com
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this is the Avid-L2
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