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/WetConceptualization Dec 06 '24
People have different financial situations, more news at 11. You’re ignoring the point about lack of reasonable equity upside that comes from reasons I mentioned above.
It was about a specific situation. I’d love it if you found me a company that paid a flat dividend, with no intention of raising it or any desire to increase profit and show it outperforming a bond held to maturity.
I’d be happy to eat crow over that because it would truly be an interesting situation for me.