4 ms·
public companies are beholden to their shareholders. Enough shareholders liked the premium they were being offered... It's not good, but it's the peril of most
by raesene9 8y ago
public companies are beholden to their shareholders. Enough shareholders liked the premium they were being offered...
It's not good, but it's the peril of most public quoted companies.
- skybrian 8y agoPublic companies can have multiple classes of stock with different voting rights. Private company can be sold.
- raesene9 8y agoSure they can, but most public companies (absent places like Facebook, which IIRC has a setup which favours Zuckerberg heavily) are more susceptible to being forced to sell whether they want to or not. Private companies (especially one's who aren't beholden to VCs or similar) have the option to say no, regardless of how much money they're offered.
- perfunctory 8y agoI always find this language kind of interesting. Companies are inanimate entities, they can't want or not want something. When you say "they want to" or "have the option to" who do you really mean?
- deleted 8y ago[deleted]
- brennebeck 8y agoPretty sure the gp is referring to employees and top management, rather than shareholders. I.e. the actual daily functioning portion of the company.