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To be clear, shareholders do routinely pull their money from companies they believe are underperforming. This is what's happening when a stock price drops or bo
by Kalium 4y ago
To be clear, shareholders do routinely pull their money from companies they believe are underperforming. This is what's happening when a stock price drops or bond rate climbs after a company's earnings fall short of expectations. Investors are generally not equally thrilled with a mediocre profit instead of a great profit because any profit is delicious.
Do they "Go Galt"? No, but their money often goes somewhere else. A different company, a hedge fund, or even a different country are all options used quite regularly. Taking their ball and going to play somewhere else with some other people is always an option. Tax policy can and does influence this.