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This. Wondering how easily people make things so simplistic (as the other commenters are doing).
by AverageDude 4y ago
This. Wondering how easily people make things so simplistic (as the other commenters are doing).
- anonuser123456 4y agoDefinitely not this. Capital is distributed to shareholders when the company has few good options to deploy it internally. These distributions are then reinvested by shareholders to more efficient purposes. If a company can’t efficiently deploy its capital and can’t distribute it… it just buys other companies and becomes a conglomerate with ever increasing market power.
- petersellers 4y ago> These distributions are then reinvested by shareholders to more efficient purposes. Why do you think this is true (specifically the "more efficient purposes" part)?