because the shareholders want returns on their investments. if you own stock, you want the value of the stock to go up. that requires more profits.
it’s not really an issue for private companies. a lot of private companies/small business don’t grow as long as they provide adequate cash flow to their owners.
This is the point though… Our world today has an issue, because it has become dependent on fast and unstoppable growth. Companies don’t have to grow fast and big, and they shouldn’t.
because the shareholders want returns on their investments. if you own stock, you want the value of the stock to go up. that requires more profits.
it’s not really an issue for private companies. a lot of private companies/small business don’t grow as long as they provide adequate cash flow to their owners.
it’s a public company issue.
Stocks can also return dividends and the value of a stock is not purely growth or even profit-based.
those companies are typically not in a growth stage. they are established.
Yes. My point was that many publicly traded companies /stocks aren’t growth focused.
Why do we have them then?
because public companies allow for a much larger access to capital and scale of operations.
private companies can’t grow at the same rate as public companies because they are limited to private investors.
public companies anyone can buy the stock. if you want to grow big and fast, you have to go public.
This is the point though… Our world today has an issue, because it has become dependent on fast and unstoppable growth. Companies don’t have to grow fast and big, and they shouldn’t.