Investor Help (NO Ihub questions)

[Eli's Gone]

A company cannot be it's own shareholder i.e. sell shares directly into the market...

also, if a company does a share buyback, those shares are either cancelled or placed back into the treasury along with all/any other unissued stock...

companies raise money in several ways:

straight up loans (debt)

loans that are convertible into shares: company gets money, lender gets stock to sell into the market usually at a discount to the market...

registered offering: company enters financing agreement with lender--registers shares with the SEC--receives money from lender who receives free trading shares to sell into market-also at a discount..

private placements: company sells restricted stock to individuals who can sell it into the market after applicable holding period is up--see SEC Rule 506 for example

http://edgar.sec.gov/answers/rule506.htm