Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

In the USA, corporations just do stock splits or run a corporate vote to issue more shares. Also many large tech companies use stock as total compensation for employees, so the "selling" of stock can be indirect as a form of revenue. Instead of paying employees cash, they pay in stock, which frees up more cash for other things. Thus they don't need to have as high of true revenue margins to pay employees well. Big corporations understand that a lot of paper value is fungible one way or another.


A stock split doesn't increase anything. E.g. they might double the number of shares, but each share becomes worth half as much.

Issuing more shares only works if there's a reason to believe the underlying value has increased. No one will buy shares in a company that keeps on devaluing its shareholders' existing holdings.

Compensation via share options isn't revenue, and I can't see how it's anything like revenue. They've just set aside a percentage of the business to be issued to employees. They haven't gained money. Yes that might mean they can save a little on junior salaries for employees who don't know that options don't mean much, but that's not revenue either.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: