why are shareholders expected return to investment every time when money isn’t infinite and infinite growth isn’t possible

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Like you can’t expect everything to be a success and money isn’t infinite. Infinite growth can’t exist, especially for all shareholders around the world. And yet they expect full return on their investment whereas companies should focus on their clients who buy their products and employees who want to help the company and be rewarded but yet the bosses only seen to focus on making shareholders happy. There seems to have been a shift in this mindset somehow over the decades.

It’s naive on my part and it’s more complicated than what I wrote, but I’m curious and I would like to understand. Thank you for your help!

In: Economics

13 Answers

Anonymous 0 Comments

They don’t expect all companies to return profits every year. They expect _their_ company to return profits.

The only reason shareholders invest in the first place is to see a return on that investment. Why wouldn’t they want that for themselves?

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