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No, publicly traded companies are beholden to act in the interests of the shareholders which in practicality is fairly vague. All companies are sort of designed
by aceofspades19 3y ago
No, publicly traded companies are beholden to act in the interests of the shareholders which in practicality is fairly vague. All companies are sort of designed to turn a profit or try to as they generally need that to continue existing but there is no legal requirement that they need to create a profit or maximize it, publicly traded or not. Obviously, companies do try to maximize profit as it makes everyone involved money but they don't have to.
- Scandiravian 3y agoWhich I think aligns with what I wrote, since I specifically didn't state that they are required to maximise profits for their shareholders, only that they are beholden to said shareholders In reality those shareholders will pretty much always demand that the company maximise their ROI, so in reality I don't think it matters whether they are required to or not If they don't they'll be eaten by a company that does and the outcome will be the same