Burying Your Company's Stock

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You must bury the shares of your public company to reduce its float. Your investor relations costs will be lower if your public company has a lower float. [See my article on the proper use of shares.] The buried shares will be deducted from the float, and the remaining amount is the effective float. Your goal is to reduce the effective float to as near zero as possible. You don't need to find buyers if your effective float is 0. There are no shareholders who want to sell their shares in your company. It is obvious that this is the best situation. If you want your company to be successful in every aspect, I recommend that you structure the float of your company this way.

Speculators, Not Investors

American stock buyers, on the whole, are speculators, not investors [http://www.iht.com/articles/529443.htm]. Stocks are bought with the intention of selling them quickly at a profit. Even the U.S. Government realizes that speculation doesn't lead to economic growth. Stock buyers who are willing to hold on to their shares for a minimum of one year pay less tax than those who trade in the Market quickly and sell their stocks. The American Government's tax incentive hasn't altered the speculative nature of the U.S. Market, because long term investors are consistent money losers. I've always wondered why long-term investors buy and hold stocks in this manner.

Avoiding Your Shares Being On The Market

I have been involved in the North American stock market for over 20 years and can confirm that professionals make more money by selling shares short (betting on the fall of the share price or the bankruptcy of the company) than by purchasing shares. There are over twenty ways to short sell stocks that are not listed in textbooks. I have written an article on shorting shares that includes 24 ways. It is the only way to effectively defend against short selling. Make sure that your company shares are not in possession of the Depository Trust Company in New York.

When most fxcm people buy shares, they leave them "in street name" rather than taking possession of the share certificates. "In street name" simply means they are all turned over to the DTC for safekeeping. Short sellers rely or "borrow" street stock in order to sell shares that are not present on the market. Public short sellers anticipate paying back the "borrowed shares" at a much lower price when the stock crashes. Professional short sellers never expect to buyback the nonexistent shares and legally avoid U.S. taxes on their profits in doing so. Your company cannot be sold short if the shares can't legally be borrowed.

If your company can keep your shares away from the DTC, by having all your shareholders demand physical delivery of their share certificates, your company is said to have a Cash Market in its stock. Few companies are aware of the dangers that short sellers pose. Brokerage firms and DTC try to make it as difficult as possible to create Cash Markets in any stock.