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There was a time when stockholders would be happy to get consistent dividends. Nowadays, "stockholder value" means starting a financial bubble around a company's stock and getting out before the bubble bursts. Some might call it pyramid-scheme business administration.

From the business' point of view, I don't understand why anyone would want to attract that kind of predatory stockholder. It's suicidal for the company and damaging to employees and customers alike. Can someone explain to my why it is so critical for companies to maximize their market capitalization?

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman

by Migeru (migeru at eurotrib dot com) on Mon Oct 17th, 2005 at 10:50:50 AM EST
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