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Because they have one job. That job is not "be the caretaker of this flock of people," and honestly, trying to socialize that risk at the firm level leads to a
by fennecfoxen 6y ago
Because they have one job. That job is not "be the caretaker of this flock of people," and honestly, trying to socialize that risk at the firm level leads to a lot of problems (not the least of which being that the firm can fail in a crisis). The purpose of IBM is to make IBM's owners money.
When the stock price drops precipitously, they lose money instead. When the stock price falls so low that they fall out of indexes, it will then go even lower, as the companies which hold the stock in an attempt to mimic an index (index funds, etc) switch to getting rid of it instead, which means selling more of it to an already-skeptical public.
- rightbyte 6y agoThe purpose of a shovel is to drain water from fields? Making money for the owners are a side effect of the purpose of a company unless it is a holding company.
- Nasrudith 6y agoThere are multiple purposes for tools. Companies are started to make money as one of their purposes.
- rightbyte 6y agoSure fair enought.
- fennecfoxen 6y agoIf IBM's owners didn't want to earn money on their investments, they'd have sent their money to charity directly, instead of buying IBM stock (and would have gotten much better charitable results). You are confusing the means to an end with the end itself.