These investors are taking a risk by purchasing company shares in the hope that the company will
eventually generate a profit.
Not exact matches
Furthermore, there's nothing wrong with waiting on the sidelines, protecting your
profits in cash, until the stock market
eventually generates a fresh buy signal.
You need to be selling real products with timeless demand that
generate real
profits that work their way to the company coffers and
eventually to your pocketbook in the form of a cash dividend.
They used debt to create a business asset that would
eventually generate significant
profits and make them rich.
Companies without
profits are dangerous because they're burning through more cash than they can
generate and this
eventually catches up to a company.
If
profits are continually
generated,
eventually there will be a dividend once the company grows to its desired size or the company will buy - back shares and reduce the total amount of stock in circulation thereby increasing the value of each stock remaining investors hold.
These companies currently offer their services for free, even though they are venture - backed — Lightning Labs recently secured $ 2.5 million and Blockstream has raised $ 80 million so far — and as such, it's believed they'll
eventually need to find a way to
generate profits.