Eskimobob, I appreciate the explanation. I do understand the difference in debt v equity instruments.
Let me explain the differences. Obviously this is simplified but hopefully you get the idea.
A company (later Co) can raise coin by loan (debt) or by selling a share of ownership (equity) in the Co.
Debt is a loan, issued bond is a loan. (the meaning of 'bond' has gotten really fraked up in BTC community, thanks to some absurd ideas that only work for government backed issues and not for btc mining. Lets not go there now. )
Bond (loan from bond holders to Co) is an obligation for the Co to pay back all the coin raised by selling bonds and interest on top of that.
Bond do not give investors any share of the Co. If business goes south and Co gets liquidated, bondholders will get their coin before anything gets distributed to shareholders.
In this context, equity in a share of a Co. If you own 100 shares of Co X and this represents Y% of the co, you own Y % of the Co. As simple as that. Equity owners get a share from the profits and will make money if Co is doing well - share price usually reflects the health of the Co.
I recommend you read the following links: EquityBond Balance sheet
This is actually a fascinating stuff and not that hard to understand, if you start from the basics.
I only asked because of your previous div distributions. So, your short answer is "no, it reduces the
company value..." I hope that the LTC GLOBAL community provides enough liquidity and participants
to allow for the natural growth of a successful company trading on equity instruments. If not, then I
would hope to recover some of my investment through dividend distribution on a portion of net
earnings. That being said, I don't want you to hobble your growth model early on. The balance of all
these variables is where a great company shines. I hope for great things from this ART project!
I made a donation from me own pocket and used that for first 2 dividends as a "Thank You" to all who participated.
But it is pointless to keep this up, until we have some real income to share.
In short, there will be no dividends unless there is profit to share.
For your information, ART has/had about 56 021 LTC and this is equal to roughly 2500 EUR.
We are fine and can pay for the firs kiln.