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Stock Markets

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  • 25-11-2005 11:00pm
    #1
    kraggy
    Closed Accounts Posts: 6,414 ✭✭✭


    2 stupid questions

    why do companies float on more than 1 market? is it another way of raising more money?

    what happens when they float on the 2nd market? isn't that just giving new people a share in the company, thus decreasing the size of the older investors' shares?

    basically if Company A starts off issuing 100 shares, then down the line issues more, do the original 100 shares lose value/importance?

    sorry for the arse-ways method of questioning.

    tried looking up these on the internet but to no avail...


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    #2
    ronbyrne2005
    Closed Accounts Posts: 3,494 ✭✭✭ronbyrne2005


    kraggy wrote:
    2 stupid questions

    why do companies float on more than 1 market? is it another way of raising more money?

    what happens when they float on the 2nd market? isn't that just giving new people a share in the company, thus decreasing the size of the older investors' shares?

    basically if Company A starts off issuing 100 shares, then down the line issues more, do the original 100 shares lose value/importance?

    sorry for the arse-ways method of questioning.

    tried looking up these on the internet but to no avail...

    its not another way raising capital it just increases liquiditya and awareness of the share
    when listing on new exchange no new shares need neccessarily be issued

    old shares dont lose value if new shares are issued because the value of the new shares equals the amount paid to the company for the new shares(you dont get shares for free!)


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