What happens to corporate profits?

RobM · Mar 31, 2017

If I have money in a bank, it's protected up to £85,000.

What protection do big companies have when they make £billions in profit?

rigsby · Mar 31, 2017

RobM said:
If I have money in a bank, it's protected up to £85,000.

What protection do big companies have when they make £billions in profit?

It helps that the companies who make the most profits are in fact the Banks themselves.

EastStandBlue · Mar 31, 2017

rigsby said:
It helps that the companies who make the most profits are in fact the Banks themselves.

Napster · Mar 31, 2017

RobM said:
If I have money in a bank, it's protected up to £85,000.

What protection do big companies have when they make £billions in profit?

profits are reinvested or paid as dividends. but corporations hedge their risks by spreading their investments and exposures across activities. if you had more than £85,000 you'd spread it across accounts for example.

Firestorm · Mar 31, 2017

Most large profits are not held in banks, the investment return is too small.
Also Its spread to limit exposure

Mad Cyril · Mar 31, 2017

Napster said:
profits are reinvested or paid as dividends. but corporations hedge their risks by spreading their investments and exposures across activities. if you had more than £85,000 you'd spread it across accounts for example.

You missed a trick with the avatar.

Surely Ranger Things would be more appropriate.

Napster · Mar 31, 2017

Mad Cyril said:
You missed a trick with the avatar.

Surely Ranger Things would be more appropriate.

Yeah I know, but I lost the site for the font generator.

Holy Joe · Mar 31, 2017

RobM said:
If I have money in a bank, it's protected up to £85,000.

What protection do big companies have when they make £billions in profit?

Big corporations receive no protection on bank deposits - depends on the jurisdiction, but usually only small/medium enterprises and natural citizens benefit from the government protections.

Big corporates making billions are deemed professional investors and should be able to afford to employ staff to monitor bank credit quality - and move their money if they think it is at risk.

What happens to corporate profits?

RobM

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rigsby

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EastStandBlue

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Napster

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Firestorm

Pedant

Mad Cyril

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Napster

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Holy Joe

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