5 ms·
companies don't have to pay as many employees anymore so that means more money possible to be returned to shareholders what's not to get about that let me bre
by vmception 6y ago
companies don't have to pay as many employees anymore so that means more money possible to be returned to shareholders
what's not to get about that
let me break it down:
money from a business operation goes into account. some money goes to costs such as employees. the rest doesn't go anywhere but is owned proportionally by shareholders. now the employees are fewer and most never needed to be there to begin with, but people - the clients - keep putting money into the account. the proportional amount for shareholders keeps growing, so other people are willing to pay an existing shareholder more for the existing share.