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Old February 6th 10, 07:38 PM posted to uk.business.accountancy,uk.finance
Peter Saxton
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Default Company purchasing shares question

On Sat, 6 Feb 2010 16:05:43 -0000, "Fredxx" wrote:

I'm looking at a company who owes me some money and I'm trying to ascertain
it's liquidity.

When a company purchases shares from one of it's shareholders, would the
valuation of the company's assets increase in line with the purchase? Or
would I expect them to stay the same?

In this case the company assets have stayed nominally the same, but the
shareholder's funds have decreased by a similar amount, which of course may
reflect the business itself.

There's a lot of nonsense talked in this thread.

Anthony is right in the context of the question. If David was right
every company would have net assets of nil.
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