Capital is distributed to shareholders when the company has few good options to deploy it internally.
These distributions are then reinvested by shareholders to more efficient purposes.
If a company can’t efficiently deploy its capital and can’t distribute it… it just buys other companies and becomes a conglomerate with ever increasing market power.
Capital is distributed to shareholders when the company has few good options to deploy it internally.
These distributions are then reinvested by shareholders to more efficient purposes.
If a company can’t efficiently deploy its capital and can’t distribute it… it just buys other companies and becomes a conglomerate with ever increasing market power.