SPO Networks Inc (SPOI)

[SchlumpyStock-Picker]

A corporation can buy a private company just as any other entity does. Why would they be limited from buying one. This happens in the business world.

A corporation see value in a private company, then buys it or a part of it, treats it as an asset like any other asset. The company may produce losses or profits and the are reported on the parent companies financial reports.

What I think you maybe suggesting is, that the CEO is diverting funds from corporation thru private company to individuals thus neglecting shareholders rights, would be considered “Money Laundering” and that would be a serious problem.

There are strict accounting rules management must follow to avoid penalty including jail time.

Bottom line is…Corporations buy private companies and there is nothing wrong with this practice.