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Shareholders are the owners. Management are legally required to maximize profits for the owners who hired them. It's not merely a recent social construct. That
by tjwebbnorfolk 2y ago
Shareholders are the owners. Management are legally required to maximize profits for the owners who hired them. It's not merely a recent social construct.
That's why you see shareholder lawsuits against their own company when management does something dumb/illegal and the stock drops.
- MiguelX413 2y agoThat's the problem.
- UncleMeat 2y agoManagement is not allowed to take a pile of money and just burn it for funsies. But the law does not require them to prioritize shareholder profits over literally everything. Shareholder Theory wasn't even a social norm in the US until the 70s!