JustNash Behind every company, there is a player. But this entity isn't really used, apart from the few players that really care who got the most presents recently...
What if the primary entities (the companies) could pay dividends to their owners. There could be player rankings: who has the most wealth? Who has increased his wealth most?
What if companies could issue some sort of stock (no voting rights, only dividends)? CEO's could choose to let some stock float freely on the market.
For example: Premium Brands is worth about $26.4Tn according to the official ranking. Let's say I decide to create 1Tn shares with a nominal value of $26.4. Then I offer 1Bn stocks for sale on this stock market. The price might shoot up to $150. Then I decide to lower dividends and maybe the price drops to $100.
My personal wealth in this scenario is not only determined by my own company's success, but also my investing prowess. If I invest in stock that does well and/or pays big dividends, I might also accumulate more wealth. So, now there is a use for company cash!
Sounds good, though the shareholders should have voting power towards the companies owner dividends decision. When deciding to lower them you would have to come up with a good explanation, otherwise the shares would be way too easy to manipulate in favor of the company. |