>A company with public shareholding loses the ability to be anything other than a generator of increasing shareholder value.
People always say this but I've never seen a law or regulation enforcing it. Care to enlighten me?
People always say this but I've never seen a law or regulation enforcing it. Care to enlighten me?
You now have two major forms of "money in and out" - what your business makes and loses by doing its thing and lolly from investment by shareholders and the vagaries of the stockmarkets.
You can make and sell stuff to make loot - old school. You can also convince people that your ability to make and sell stuff is so good that you are really cool - your share price rises and so does your "value" via capitalization.
You don't list unless you actually want to become a generator of increasing shareholder value. There is no law or regulation because it is what it is. You need more capitalization and listing is a method. In return you sell your soul!
Not a law or regulation.
Why can't a company have a goal other than profit along side it? there's no reason they can't coexist and worthy of investment for the goal too.
If people don't want that they're free to not invest.
>You don't list unless you actually want to become a generator of increasing shareholder value.
Says who?
>There is no law or regulation because it is what it is.
There's no law in physics for it either. So in conclusion it's a layman's myth.
If we decided to try and grab a pot of cash from quivering investors to do mad things we would go for a listing - go public. Nowadays we would flood Insta/X/FB and that with all sorts of wankery and perhaps bother with the usual media and then show a bit of ankle to an exchange and then go with a prudent offering. We would offer x shares for y price.
Obviously, the world goes mad for us and buys the lot and with full capitalisation we become a unicorn with a rainbow mane. The papers are agog with how cool I am and TikTok explodes with how cool male pattern baldness really is.
y goes berserk and we have to split the bloody things to allow plebs to have a crack.
We are talking about money and not physics. I am a journeyman.