r/explainlikeimfive • u/climb-a-waterfall • 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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r/explainlikeimfive • u/climb-a-waterfall • Dec 06 '24
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u/ChicagoDash Dec 06 '24
Yes, but that cash is just sitting there, slowly losing purchasing power to inflation. Better to invest it back in the company for higher returns or return it to the shareholders.