Freeport-McMoRan (FCX)

[eddy2]

You people are so wrong in my uneducated opinion. First of all you can’t sell nothing and selling a promotional scam is to me selling nothing regardless of the story. Go too your local book store and buy a good fictional novel if you want a story. You can even go on line and save a tree and the clutter in your home.

This is how it works. Capital is lent to the company be it private or institutional. They bold a business around that borrowed capital. They then sell there interest in the business. Al new capital is introduced this way. If and when the equity is sold it’s taxed to the original owners. The owners can sell there tax position to the new owners if the tax is looked as an expense. This expense can be written down by the goodwill paid for the equity or position in the company because goodwill is a expence based on the past performance of the company.

Now there is a six month period they call a performance period. This is to insure that the propriet tax’s as well goodwill has been assigned. In the period of time the funds raised for the purchase is accumulated in an account called capital surplus.

When it’s all a go a ticker symbol is reassigned and delivered to the new purchasers changing the class of the equity from the top back to the bottom. Q is often associated with what is referred as the quick offering exchange of equity for the cash raised plus the tax debt.

So what is the deficit. In my opinion it’s a accumulation of tax’s when tax’s where higher then what they are at the time of sale. Then it maybe the cost of promotion but never the less it can be used to bring down the tax’s owed. That’s my opinion. Mmmm thinking about it more it could be money given by the government to equity holders based on after tax capital raised. Mmmm maybe not. Governments in general don’t like to give back something they have taken from you nor do banks.

I may not have it all figured out but I believe I’m much closer then a lot of you in this program.