3 ms·
Some owners of private companies don't see the goal of the company as profit maximization - eg SpaceX. With a public company there's always going to be a share
by evandwight 5y ago
Some owners of private companies don't see the goal of the company as profit maximization - eg SpaceX.
With a public company there's always going to be a shareholder to sue you for not maximizing profit.
https://www.litigationandtrial.com/2010/09/articles/series/special-comment/ebay-v-newmark-al-franken-was-right-corporations-are-legally-required-to-maximize-profits/ https://www.litigationandtrial.com/2010/09/articles/series/s...
- justahuman74 5y agoSpaceX is somewhat expected to produce profit at some point, else it would have been registered as a non-profit
- evandwight 5y agoSpaceX definitely wants to make a profit. I don't think building a city on Mars is profit maximization though and this is Elon's explicit reason for not taking SpaceX public. > According to the company, the short-term demands of shareholders conflict with his long-term ambitions. https://www.investopedia.com/articles/markets/121515/will-elon-musks-spacex-go-public.asp https://www.investopedia.com/articles/markets/121515/will-el...