An Insight a Day

The Concept of Shareholders Is Weird

So the person who puts a lot of money into a company owns a part of the company and can make big decisions about the company?

Shouldn’t companies be owned by the people down there doing the work, instead of the people up there who just put in $10 and expect a >$10 return? Do you think they care as much about the business as they should?

Or put it another way, imagine a parallel universe where every company is employee-owned. How do you think they will react when we tell them our companies are run by outside investors or shareholders who just wants their money to work harder than them?