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Hyruken said:
Thechalkblock said:
Good thing they have (had) a lot of money.

 

 Arent profits (if there are any) handed out amongst the shareholders at the end of each fiscal year? i.e they don't save money?

 

When a publically traded company makes a profit, the money is split in two ways: either it is kept inside the company for reinvestment, which boosts the company's value, and therefore the shareholders' stock value goes up; or it is paid directly to the shareholders as a dividend.  Usually companies will keep some of the money and pay out the rest.



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