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No it isn't. Shareholders have no interest in owning a failing company, it is in their best interests for the company to be sucessful and profitable because the
by djbebs 6y ago
No it isn't. Shareholders have no interest in owning a failing company, it is in their best interests for the company to be sucessful and profitable because they are the ones with skin in the game.
- willis936 6y agoOh so then shareholders do not care about quarterly dividends and constant growth forever? Publicly owned companies are all inherently sick.
- astrange 6y agoShareholders demonstratably don’t care about dividends since many large companies like Amazon/Uber don’t have any, aren’t even ever going to be profitable, but just have a really cool story. But theoretically shareholders don’t care about these things as long as the company will grow a lot in the next 30 years. There are some alternative stock markets set up to encourage this. And stockholders hardly exercise their powers. CEOs tend to not get fired.