Saturday, January 14, 2012

What does this mean, "Business corporations can only consider the interests of their shareholders"?

First of all, this is an idealistic quote. In reality, many corporations ignore their shareholders. That's why you have corporate raiders trying to takeover companies. Business corporations indeed should consider the interests of their shareholders. Afterall, shareholders are OWNERS of the company through stock. Unfortunately, most shareholders are apathetic and don't even vote their shares when they have a chance.

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