Some companies like Newman’s Own say “100% of profits to charities”. Obviously, their employees still get paid, and the fact that new cookie brands come out means that some of the money is re-invested in the company. Presumably those two financial factors are not considered part of profits since they aren’t going to charity.
So at other companies, where do the profits go? If they aren’t going into either the company or any of its employees (including the CEO), where else could it go and still be considered profit?
In: Economics
When companies end up with excess profits they end up paying dividends to the shareholders or buy back the shares from them. This is why owning shares in a company that is doing will can be so profitable. Whenever they end up with profits you will get some of it.
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