Sal Paradise wrote:Yes it was - you were initially suggesting that the share price was the primary consideration of all serious CEO and that they would make all their decisions around the movements in the share price no matter how short term.
I am suggesting that is not the case - I think serious companies make decisions that they genuinely think will benefit the business longer term - increases in the share price should be a positive externality of those decisions. I don't think they make decisions to give the share price a short term boost to satisfy a few traders - you quite clearly do.
That is not what I said BUT I have just checked back and the bit in blue, I reckon, will be the bit you mean ...
El Barbudo wrote:...So, putting it in very basic terms, companies are run in a way to try to please short-term stock market gamblers who add very little to society but take a cream off the top of what the economy produces.
And then, very often, put their profits through an offshore company and pay next to no tax.
Allow me to correct that...
As directors often receive bonuses in shares, they are thereby motivated to increase the share price as that, ultimately, improves their remuneration.
Such efforts which successfully result in a share price change also go to feed short-term stock market gamblers who add very little to society but take a cream off the top of what the economy produces.
And then, very often, put their profits through an offshore company and pay next to no tax.
How's that?
