Originally posted by tazdevil
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DOOM: UK 2-year bond yields at Truss panic levels
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I guess you're referring specifically to contractor companies because I don't think shareholders of many larger companies would appreciate a "zero profit" strategy.
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Sure they would if their share increased in value.Originally posted by Snooky View PostI guess you're referring specifically to contractor companies because I don't think shareholders of many larger companies would appreciate a "zero profit" strategy.Comment
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Yes but as all companies are their own entity they should all maximise use of revenue to build and improve. Shareholders may like dividends but they also like rising stock prices and get value both ways. As a shareholder I prefer my investments to be in successful companies investing in their future rather than companies being gutted to increase shareholder (more usually board member) wealthOriginally posted by Snooky View PostI guess you're referring specifically to contractor companies because I don't think shareholders of many larger companies would appreciate a "zero profit" strategy.
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You're a teeny tiny minority stakeholder compared to the global corporates who make up the majority of equity investments and who want a combination of share price growth and income stream. Pension funds, insurance companies etc need cashflow as well as assets but don't want it all to come from selling investments.Originally posted by tazdevil View Post
Yes but as all companies are their own entity they should all maximise use of revenue to build and improve. Shareholders may like dividends but they also like rising stock prices and get value both ways. As a shareholder I prefer my investments to be in successful companies investing in their future rather than companies being gutted to increase shareholder (more usually board member) wealth
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Yes, it “just” reduces profits level - so lower dividends unless costs are cut, and investment can be easiest to cut, shares market on top - if dividends get cut many big firms will take a drop and the ugly pension issues will resurface etc - stupid Tory Chunts fooked the economy for good, on top of Brexit as well, chunts the lot of them.Originally posted by tazdevil View PostCorp tax is paid on profits and business investment reduces profit so level of CTax not an issue there. Also a good businessman aims for a zero profit scenario which proves they've maximised use of income. In any case you should be salting £60K for each Director into executive pensions to minimise profit
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