this post was submitted on 17 Nov 2025
728 points (98.5% liked)

me_irl

6904 readers
118 users here now

All posts need to have the same title: me_irl it is allowed to use an emoji instead of the underscore _

founded 2 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
[–] TubularTittyFrog@lemmy.world 7 points 2 days ago* (last edited 2 days ago) (2 children)

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.

[–] stevestevesteve@lemmy.world 3 points 2 days ago (1 children)

Stocks can also return dividends and the value of a stock is not purely growth or even profit-based.

[–] TubularTittyFrog@lemmy.world 0 points 2 days ago (1 children)

those companies are typically not in a growth stage. they are established.

[–] stevestevesteve@lemmy.world 2 points 2 days ago

Yes. My point was that many publicly traded companies /stocks aren't growth focused.

[–] cosmicrookie@lemmy.world 2 points 2 days ago* (last edited 2 days ago) (1 children)

it’s a public company issue.

Why do we have them then?

[–] TubularTittyFrog@lemmy.world 2 points 2 days ago* (last edited 2 days ago) (1 children)

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.

[–] cosmicrookie@lemmy.world 4 points 2 days ago

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.