shuraiya on 16 November 2011
| Jexy said: Investors are dumb greedy bastards sometimes. Let's think... shall we invest in a company that spends all it's cash on new projects that may fail and put the company in the red, and possibly out of business, or stay with the safe company that will have enough cash to deal with anything bad that happens? Hmmm... |
Not necessarily. Investors invest in a company in order to make money. If a company simply sits on a pile of money, then while money may not be lost, there's also no money to be made. A company realistically shouldn't have so much money on hand unless they are anticipating things going very wrong with the general economy--a situation where having cash on hand can make for sone very profitable aquisitions in rough times--or they are planning to pursue an acquisition(s) and are gathering the necessary funds.
