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But IPOs allow the public to enjoy the proceeds from corporate profits, whereas privately held companies do not. Publicly traded companies are one of the most
by JBReefer 11y ago
But IPOs allow the public to enjoy the proceeds from corporate profits, whereas privately held companies do not.
Publicly traded companies are one of the most important pro-egalitarian components of Capitalism.
- WalterSear 11y ago>Publicly traded companies are one of the most important pro-egalitarian components of Capitalism. Capitalism eventually buys the market. There has never been a different outcome.
- st3v3r 11y agoAt the same time, going public is usually one of the worst things a company can do for itself. With few exceptions, instead of being ok with mild profits, shareholders demand extreme amounts of profit and growth, and will bitch and moan and threaten to takeover if that doesn't happen.
- checker 11y agoTrue, but why don't more tech companies follow Amazon's lead of tempering shareholder expectations? Is Amazon somehow unique in being able to do this?
- huac 11y agoAmazon is in great financial position, but they reinvest all net revenue. So I guess they don't qualify as constant profit (now) but they count as growth, with eventual high profit
- st3v3r 11y agoKind of, because they're still making buttloads of money. I also don't know offhand what percentage of stock Bezos and Co own. Google is able to get away with a lot of this because 1). They still make buttloads of money, and 2). Larry and Sergei own the majority of stock (at least I'm pretty sure they do).