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subject: Stock Markets and You [print this page]


In any case, this is always the better position to be in, if you are on the look out for the optimal use of your money. Of course, if you are an entrepreneur rather than an investor, who is interested in running the business, which is a different story as it involves. Purchasing an entire company is fiddly in the extreme. The deal is often among sellers and buyers who are extremely knowledgeable as well as resourceful. The deal may not always work out in the buyers benefit. If the company is worth buying, it is absolutely certain that you will have competition. Numerous players will come in and some will operate clandestinely. It is a given that it will not be a one horse race, and you will have to name the best price. As interest evinced increases, your hold over the price will relax. Hardly a happy scenario when looked at from a buyer's viewpoint. Purchase prices will hardly remain at the low. The probability that the entity that ends up with the company has paid quite a steep price for it is pretty strong. This may lead to chances of creating long term value being diluted. Part owner ship or buying stock is a whole different ball game. Cheaper and more value for money in many ways less cumbersome than owning a whole company. Getting richer through stocks is a whole lot easier than buying up an entire company. A negotiated price of the company will come out entirely different when compared with prices stocks.

Stock Markets and You

By: tanmay




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