Supposed imperative to “maximize” a company’s share price has no foundation in history or in law.

Read this: In this article, Steven Pearlstein explores the prevailing assumption dictating that corporations should be run in a manner that “maximizes shareholder value.”  Forget the era of “managerial capitalism” in which managers sought to balance the interest of shareholders with those of employees, customers and the society at large.  That has become hogwash.
Instead we have accepted the idea that corporations must “maximizes shareholder value.” and ultimately this behavior leverages the hedge funds that are buying and selling millions of shares every couple of seconds while paying minimal capital gains taxes on enormous profits – at the expense of society.


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