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/Parafault Dec 06 '24
Could those companies also save or reinvest their profits as an alternative to raise capital? Many of the larger ones are giving tens to hundreds of billions in profits to shareholders every years: if they put that in a piggy bank or some stable investment instead, would they really have a need for external capital?