Quote:
Originally Posted by pwalker8
That is true for a publicly traded company, but then again, many of the publishers are privately held so the same rules don't necessarily apply. It really comes down to where they are incorporated and who actually owns them. To a great extent that is why we are seeing a lot of publicly held companies go private. There isn't a requirement to maximize profit, especially short term profit. Even with public companies, the fiduciary responsibility is to the health of the company, rather than to the purely to maximize profits or as the catch phrase goes "investor value".
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Even privately-held companies can have shareholders--just not public ones. That doesn't really change their fiduciary duty. And the "health of the company" is usually not measured in ways other than financial, when it comes to investors, shareholders, stockholders, etc.
Hitch