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> many people in USA believe that corporation has duty to increase shareholder value. And similar stupid ideas. No more stupid than the idea that companies are
by briandear 7y ago
> many people in USA believe that corporation has duty to increase shareholder value. And similar stupid ideas.
No more stupid than the idea that companies are supposed to exist solely for the benefit of the employee. Shareholders are the ones that put the money up to start and grow the company in the first place, so yes, there is an obligation to shareholder value.
Don't like that? Then you are free to start a company that doesn't take investment.
- p_l 7y agoShareholders take a risk in their investment, mitigated by making it more fluid as they can easily trade the shares compared to more traditional investments. There's however no law that holds a figurative gun to the heads of corporation that their duty is to increase the value of those shares.
- earthboundkid 7y agoShareholders are only able to make contracts because the government uses guns to arrest people who break contracts. Don't like it? Move to an offshore oil rig, I guess.