3 ms·
Profits influence share price, but outside of dividends and buybacks, shareholders do not take profits from the company. My point was that the question isn't we
by deelowe 4y ago
Profits influence share price, but outside of dividends and buybacks, shareholders do not take profits from the company. My point was that the question isn't well formed, because it would not make sense for shareholders to sue over poor profits. Shareholders are not directly harmed by profits/losses.
Instead, shareholders would need to (and have successfully) sue(d) over executive actions which negatively and negligently impacted shareholder value (stock price).
- runarberg 4y agoBut they still take profits, just through indirect means. They’re not harmed, but they sure feel entitled to profits. When the stock raises in value, and shareholders make their money from it, they are taking profits (what else could you call it). That profit was created by somebody that worked for it but didn’t get it.