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> And maybe stock owners shouldn’t hire non-engineers to run their aircraft firm. Stock owners are part of the problem. Stock is traded regularly and there's
by cptskippy 3y ago
> And maybe stock owners shouldn’t hire non-engineers to run their aircraft firm.
Stock owners are part of the problem. Stock is traded regularly and there's nothing forcing the owner of a stock to remain the owner.
Stock owners expect short term growth and quarterly returns, this motivates them to hire executives who will deliver. As soon as the company shows any signs of weakness they can either break it up or cash out and abandon it.
* And the problem has been exacerbated by the Stock Market and the ease and speed with which stocks can be bought and sold.
- FredPret 3y agoStock owners are responsible for everything that happen to their company. The buck stops with the owners. But short-termers usually end up transferring their capital to long-termers. I bet the majority of investors are short-termers, but the majority of the capital is in long-term hands.