Submitted by hellothere564738 t3_yffqbu in explainlikeimfive
auntanniesalligator t1_iu3xg8v wrote
Reply to comment by hellothere564738 in ELI5 How can a public company become private? by hellothere564738
Electing boards of directors who hire the CEO is arguably just as consequential to your investment. Shares aren’t like land or a car, where there is are myriad ways to extract value. The only point in buying a minority stake of shares in a company is to make money on dividends or value appreciation, and if the majority of shareholders think a private sale is the best way to make money, then it’s appropriate that everybody is included.
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