Normally what is acceptable use for stock that investors invest through buying shares from a company?
Gail asks:
Normal uses by the company when a company offers a pink sheet stock, establishes itself as in IPO, or otherwise offers stock to investors? What uses are acceptable for the funds that were invested as stock into the company?
Is there a legal limit or is there just a moral obligation?
Normal uses by the company when a company offers a pink sheet stock, establishes itself as in IPO, or otherwise offers stock to investors? What uses are acceptable for the funds that were invested as stock into the company?
Is there a legal limit or is there just a moral obligation?
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I do not know the answer, but I do know that Mastercard used some of its proceeds of its IPO defend against litigation.
THEY SHOULD TRY TO INCREASE THE VALUE FOR THE INVESTORS
The usual statement is “for general corporate purposes”.
I don’t know what you mean by a moral obligation. This isn’t a bond. They aren’t going to pay you back no matter what.