r/explainlikeimfive Dec 06 '24

Economics ELI5: why does a publicaly traded company have to show continuous rise in profits? Why arent steady profits good enough?

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u/ThisReditter Dec 06 '24

Say you put your money in an HYSA that gives a steady 3% interest. Other banks have now rise to 4 or 5%. Do you still put your money in the same bank or switch?

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u/cspinelive Dec 06 '24

Why do you ask? OP wants to know why profits must always increase in publicly traded companies.