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The purpose of a company is not to maximize profits because that would mean you have to pay taxes. The holy goal instead, is to maximize shareholder value. A s
by melvinmelih 4y ago
The purpose of a company is not to maximize profits because that would mean you have to pay taxes.
The holy goal instead, is to maximize shareholder value. A small, but important difference (and helps explain the existence of companies like Uber and Twitter who have barely turned a profit in the past decade).
- justahuman74 4y agoAt some point there does have to be a cash-out, otherwise what would motivate the person at the end of the line to buy the shares that you're selling
- iglio 4y agoThe cash out is selling the shares and realising the capital gain? For these types of business, there’s always someone next in line to buy, hoping for the same performance.