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by taklimakan 1959 days ago
When companies grow, they often go public to keep growing and play against bigger competitors. When they go public, investors buy stakes in it. When investors buy stakes in it, they want a return on their investment. The key point to understand is that those investors’ job is exactly to make a profit, but that’s not always because they are sharks and want to afford a faster car. Some do. Some others may be from pension funds, insurances, retail banks or other socially relevant entities, and all of a sudden if they don’t make a profit, some family in some place might just not make enough interest to withstand inflation, and some other one might outright lose their life’s savings. The problem is not greedy players. A game that rewards unbounded greed is the problem.