Yes, aside from being accountable to shareholders the executives are generally largely compensated in stock (which is easier for the company to offer large amounts of than cash) Or they include the original founders who always had stock
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When negotiating compensation, how much an employee asks for in cash vs equity is a whole signaling thing - at the executive level it's a matter of holding yourself responsible for how well the company does, the stockholders want you to have skin in the game
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As far as whether stock has any value if you don't sell it, it's kind of funny that investing has become so speculative and future-oriented that we've lost sight of this, but stocks are eventually supposed to directly pay you money in the form of dividends
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The whole thing about stock not having value if you don't sell it is also why i get so frustrated with a lof of the billionaire talk. "Jeff Bezos could pay for US health care for a year" and shit. No he couldn't, his entire net worth is stock in a company, not liquid cash.
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Replying to @chton @arthur_affect and
And he can't just sell his entire company in one go because that would cause a major shift in the market and drop the price. He's probably still a billionaire in liquid assets, sure, but not to the scale people think he is. It's not spending money, it's a mountain of solid gold.
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Yeah but Amazon stock is supposed to eventually start sending checks for dividends to everyone who owns some It's just that tech is a fucked up pyramid scheme kind of industry where everyone is hoping for profits in some vague future while barely breaking even right now
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That's absolutely it. Amazon hardly pays any dividends, because they don't have that much profit. The value of Amazon stock is entirely virtual, caused by speculation. It's like antiques. It's not valuable for the material but for the increasing rarity vs demand.
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Which is kind of my point - Ellie is right that the whole speculative market in stocks feels like meaningless nonsense like the prices of rare baseball cards It isn't supposed to be - the price of a stock is supposed to be you betting on how much cash that stock will pay out
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Replying to @arthur_affect @chton and
But the market in the real world is increasingly divorced from actual profits from the company actually making stuff and selling it to actual customers And the less connected real profits and stock prices are the more likely it is we're in a bubble
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Replying to @arthur_affect @chton and
That's why the Bitcoin boom is so upsetting, because Bitcoin actually is like what Ellie is saying, it's like Dutch tulip bulbs, expensive only for being expensive without actually producing anything
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And the fact that investors jumped on Bitcoin and made it into a bubble is a sign we may be in a bubble economy generally
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I agree on this, but that's sort of the point, too. The difference between bitcoin and stock isn't that big, they're both pure speculation markets, and unrestricted speculation leads to bubble and pop cycles.
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Which is why super mainstream exchange sites for stocks now trade in crypto :/
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