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> That is just completely wrong and displays ignorance of the basics of how capital markets work. Investors want to maximize their risk-adjusted rate of return.
by bitcharmer 3y ago
> That is just completely wrong and displays ignorance of the basics of how capital markets work. Investors want to maximize their risk-adjusted rate of return. Even if a corporation still has some potential growth opportunities, investors may prefer to get their capital back so that they can invest in other more profitable ventures and they will exercise their votes accordingly.
It's hilarious how you put these two sentences together completely ignoring the possibility of selling you shares on the open market if you "prefer to get your capital back". That's a real display of ignorance.
- nradov 3y agoIt's sad to see the level of aggressive ignorance on HN sometimes. Many investors prefer to have the capital returned through stock buybacks and/or dividends than sitting in a corporate treasury where it can potentially be squandered. The fact that investors can also sell their shares is irrelevant.