The Mudcat Café TM
Thread #148981   Message #3464775
Posted By: Bobert
11-Jan-13 - 07:22 PM
Thread Name: BS: debt limit. can nybody explain why
Subject: RE: BS: debt limit. can nybody explain why
Okay, it's not technically debt... It's still money given to Bobert, Inc. which Bobert, Inc. will use in the same manner than if the money had come from a loan...

Think we're splitting hairs here... Yes, technically it isn't debt but it is money in (price of stock) and collateral out (piece of your company)...

The only difference between this and debt is that rather than an agreement to buy back the collateral Bobert, Inc. doesn't care if the collateral is traded to someone else...

B~