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Management gets fat bonuses for reaching profitability targets, investors are happy.
by terminalcommand 4y ago
Management gets fat bonuses for reaching profitability targets, investors are happy.
- eru 4y agoI mentioned that investors don't seem to be getting any special benefit, if you look at the stock (including re-invested dividends).
- terminalcommand 4y agoPublic investors may not be getting any benefit, because the private investors have already IPOd at a ridiculous stock price. Private investors usually have non-trading shares. The way the scheme works is that if they find the stock price to be right, they convert their non-trading shares into trading shares and profit more. This way the stock price doesn't increase much. They basically dilute the amount of public shares for profit. They don't give any thought to public investors such as you and me.