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Sunday, 01/15/2017 3:54:31 PM

Sunday, January 15, 2017 3:54:31 PM

Post# of 30846
Today it's flow through shares and what they mean to you as a investor. You hire a company too build a product or supply a service. You pay up front for this with borrowed money and in return the company issues shares as good will.

As the service or product is performed the company releases back the shares that underwrote the service or product requested and paid by debt borrowed.

Little by little this service or product is sold to investors. Should the product or service not live up too the value paid as amortization goes then the loss will be put against the gains of the equity sold above par.


Now should the figure exceed the par figure " deficit " those loses can be sold in the market place as collateral debt for others to buy and use against there positive revenues.

Because tax is an expence and because shares that are sold above the par value " cost of material and labour not taking in to account depreciation and amortization " the cost of capital relative to time as well sales and administration cost. Those last stated costs I mentioned can not be tax exempted cause they are paid up front by the one performing the service or product development cost and sales much like a franchise would work.

Now a service or product supply can demand royalties as sales are taken in unlocking the liability of time.

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