Why has wal-mart sold most their shares to the public? Read details! Also Explain PROFIT MARGIN?


Question:
I mean they make a lot and if their profit margin If Wal-Marts is 3.2% would that mean that you take 3.2 times their sales and then divide by 100 for the dollar worth of profits? Explain profit Margin? Also WHY DID PEOPLE LIKE ALICE WALTON sell most of their stock I mean I know you can make A LOT SELLING STOCK it's why companies sell stock for money, but why did they sell so much when they could make bigger profits?

TO SEE WAL-MARTS PROFIT MARGIN CLICK THE LINK

http://screen.yahoo.com/cc?mc=100000000%...

Answer:
Profit margin the the % of sales that is profit. If the margin is 3.2% then for every dollar of sales they make 3.2 cents profit (buy a $10 item and on averge they made a 32 cent profit). So to find their total profit just multiply the total sales by .032.

As to why Alice Walton sold her stock, well you'd really have to ask her. Still this is a really big company now and it very hard to grow a really big company that quickly. I means its a heck of alot easier to go from 10 stores to 20 stores than from 1000 to 2000 (though both these represent 100% growth). Maybe she just thought it was slowing a bit a wanted to diversify, maybe he didn't like the current management (I mean Sam Walton was the genius behind wal mart but he passed away awhile back). Who know.
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http://buyingandsellingshares.blogspot.c...




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