If Amazon and similar corporates haven’t turned profitable, then how are they paying their shareholders/investors?
In: Economics
Profit is a weird thing in companies. The main business line can be making a profit, but that profit is being expended elsewhere in the idea of “expanding the business”.
Most shareholders care about the value of their stocks. Their stocks are based on the perceived value of the company. As the company grows, that value goes up, so their share prices go up.
As for investors getting paid, since those are debts held by a company, they are reflected as debts on the balance sheets. They are taken into consideration before deciding whether or not there is a profit.
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