3 ms·

Honestly, I do not understand it myself either. I just understand the mechanisms behind it but I do not understand why one would logically want less money.

• positr0n 2y ago
  If you owned a business that had a bunch of cash sitting around with no useful growth opportunities to invest it in you wouldn't keep it in your business's bank account, you'd pay yourself and spend the money on a vacation or invest it elsewhere. Same with a giant corporation. Its shareholders want to be invested in a business. Owning part of a business that is 10% just a giant cash pile isn't necessarily appealing. The corporation should return the cash to its investors so they can decide what they want to do with it.
  • dagmx 2y ago
    That’s fair. I’d probably invest it in my employees though personally rather than return to investors, but I follow.