2) The money is often wasted, goes to pay high salaries to obviously inept officers, or goes to repay older debt. Old debt is being refinanced at worse conditions. This is rarely mentioned to shareholders.
Which still seems to be a huge percent of the times, the old debt is in fact old compensation owed the very same ceo's running the scam.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.