03-05-2004, 01:03 PM
Somewhere along the line, this thread has turned into comedy. Well...we need one of those, too. This is funniest in a while.
Vicious is almost right, but they are not making back any losses. Amazon.com have been losing millions of dollars for years. I didn't know they fianlly made profit for the first time. This is how it works. A group of investors pour money into a company and own a big portion, hoping that company value will increase someday. Meanwhile, company executives drain investers' money year after year (including paying themslves a million dollars worth of big bonus and free jets even when the company is in the verge of bankrupcy: was it US airway or United? One of them did that). When they run outta money, they either borrow money or issue more stocks to raise operating capital. That fails, company goes bankrupt or goes outta business leaving investers (actual owners of company) with worthless stocks. Many companies are operating in this basis year after year and never make profit and never will make profit. This is equivalent to using your own money to run your business with hired hands until you go broke. Strange as it seems, this is quite normal.
Quote:Originally posted by Vicious
Interesting . . . I still say that they're making back those losses somewhere. Maybe through affiliate links or something. Or them bastards might be skimming off the top like Worldcom and whatever that other company was.
Vicious is almost right, but they are not making back any losses. Amazon.com have been losing millions of dollars for years. I didn't know they fianlly made profit for the first time. This is how it works. A group of investors pour money into a company and own a big portion, hoping that company value will increase someday. Meanwhile, company executives drain investers' money year after year (including paying themslves a million dollars worth of big bonus and free jets even when the company is in the verge of bankrupcy: was it US airway or United? One of them did that). When they run outta money, they either borrow money or issue more stocks to raise operating capital. That fails, company goes bankrupt or goes outta business leaving investers (actual owners of company) with worthless stocks. Many companies are operating in this basis year after year and never make profit and never will make profit. This is equivalent to using your own money to run your business with hired hands until you go broke. Strange as it seems, this is quite normal.