> Companies who do not spend their money according to stockholder wishes get sued, correct? For misuse of funds?
No, they get sued for malfeasance: taking investments and failing to return a profit.
It doesn't matter what stockholders want, the purpose of buying stocks is to make a return, and if a company fails to prioritize profit above all else, then they have broken the implicit or explicit contract with their shareholders: investment now in return for dividends later.
No, they get sued for malfeasance: taking investments and failing to return a profit.
It doesn't matter what stockholders want, the purpose of buying stocks is to make a return, and if a company fails to prioritize profit above all else, then they have broken the implicit or explicit contract with their shareholders: investment now in return for dividends later.