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Financing companies in general and at Te Aroha in particular
| Content Provider | Semantic Scholar |
|---|---|
| Author | Hart, Philip |
| Copyright Year | 2016 |
| Abstract | Those investing in mining companies were, wisely, warned to tread warily to avoid being duped by ‘wild cat’ promotions, for many companies were blatant speculations and most would fail. The three main causes of failures were misrepresentation of the value of the ore, overcapitalization combined with insufficient working capital, and mismanagement. Mining investment was a form of gambling, with professional speculators seeking quick profits not long-term rewards. Companies were floated on the basis of inadequate prospecting, and some flotations were unquestionably fraudulent. Laws creating no or limited liability companies were designed to protect investors, but they encouraged floating companies with inadequate capital. Issuing partly paid-up shares required shareholders to pay calls, but often they preferred to forfeit their interests; and sometimes dummies were used to |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | https://researchcommons.waikato.ac.nz/bitstream/handle/10289/10363/No.%2051%20financing%20cos.pdf?isAllowed=y&sequence=5 |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
