Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 1
Some people get really confused when buying shares they think that it is the same as taking over(buying) a company outright, it's not.
Of cause that is not the case as a small shareholder you have no power to effect the direction of the company, no power to kick the boss up the bum when they need it, no power to sack those that need it, the list go's on but you get my drift.
In buying shares as we do you are really looking for someone in time to buy your shares for more than you paid nothing else, your not buying the company.
When a company buys out another it's true that the books are looked at , but it is absolute bull if you make the suggestion that is the only thing they look at, it's not. As almost without fail many many deals are made when the finances of a company don't stack up.Of cause most takeovers in the stockmarket happen because of the purchasing companies desire to grow, increase market share or even as strategic move. I doubt any takeovers have happened because the accountant calls up & says hey look at the intrinsic value of this mob.


Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.