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Unfortunately, it’s not this simple and certainly not this idealistic. 1) A (public) company’s first duty is to increase shareholder value, ergo, you take the
by lukeqsee 7y ago
Unfortunately, it’s not this simple and certainly not this idealistic.
1) A (public) company’s first duty is to increase shareholder value, ergo, you take the cash.
2) That company wouldn’t have any influence on those millions if they aren’t in the market, so the point is moot. They’re either in the market under the constraints by the governing body or they aren’t in the market.
I’m not saying this is how I think the world should work; I am saying this is how it does work.
- Consultant32452 7y agoThis isn't strictly true. A public company's first duty is to fulfill its stated purpose in its articles of incorporation. While that's often to maximize profits, it's not always the case. For example, your for profit company might also have a stated purpose to protect the environment.
- lukeqsee 7y agoAh, yes, valid. Unfortunately that’s precious few public companies.