What happened to the public corporation? | Business Beyond

[@dwnews]

Correction: The growth in share prices for Amazon and Microsoft reported here fails to adjust for the multiple stock splits introduced by both companies. For example, a single share of Amazon purchased for $18 at IPO would have been split into 240 shares, with an adjusted price at IPO of $0.075 each. With a single share of Amazon currently (at the time of this piece) trading at about $188, the overall rise in value of a single share would be closer to 2500 times the original value - not ten times. Many thanks to our viewers for pointing out the discrepancy.

[@tysone1254]

Ha I was gonna comment this thanks for the correction

[@ChandlerScarborough]

Part of the reason that there are fewer public companies: they've all merged with one another. There used to be hundreds of banks and savings & loans in my community. Now there are about a dozen. The airlines merged into four primary carriers. Telephone and cell phone companies merged from dozens down to three. Berkshire has acquired hundreds of companies in dozens of industries. Hundreds of grocers, pharmacies, and retailers have merged or been driven out of business.

[@sergioacevedo2254]

Exactly what I was thinking. They've consolidated, so yes there are technically less of these companies, but these fewer companies make a lot more as well.

[@jackjackthompson5771]

Good point! Definitely part of it.

[@thebl3mish]

They did mention this - this is one of the reasons they mentioned the usual exits include mergers and acquisitions. I think this is the bad part about capitalism as investors in these big massive "too big to fail" get absurdly rich while suffocating everyone else. But you see from time to time that sometimes these huge companies that acquired this innovative startup are not able to deliver in the same way the startup did so they sometimes either kill it or plug it in some other ventures - and this stalls innovation which capitalism should be incentivizing instead.

[@allocated_capital]

Kinda surprised the video barely touched on why company management may often times prefer private investments since the public scrutiny of financial statements causes management to try and falsely improve numbers since if they don’t exceed the public markets expectation every time the stock price will fall and so will their bonuses

[@thebl3mish]

That and the predatory practices where some investors kick out the founding team just so they can replace them with their people.

[@saltymonke3682]

Yep and the risk of corporate raiders

[@Exxperiment626]

'Its a big club, and you aren't in it'

[@kinngrimm]

quote of George Carlin

[@mine4me403]

Exactly 😂

[@j2times2006]

Nobody called it quite like George Carlin

[@frs8262]

The simple answer: concentrated wealth. The public is losing their wealth compared to what they had in the past since the wealth is moving to the few of the population. Therefore go public is no longer needed to raise fund for a company, since you can get it from a few people in a form of private equity.

[@kinngrimm]

sideburn: I stopped playing blizzard games when they used the pay per month model for WoW and then adepted that model for other of their titles. I stopped playing activison games when they joined forces with blizzard and i wouldn't even dream of playing freakin Microsoft titles in my worst nightmares. Indy games all the way. In that aspect, using venture capital to sneak in the backdoor into young start ups or just straight out buying them i see a loss for the consumers, as inovation is gobled up by a few big players snuffing out the rest. Many concepts then going to waste in someonce drawer. Big tech, as all big companies, after they peaked in many ways including inovation i see as a drag on societies. The amount of money wasted in advertisment, PR, lawyers, lobbyists and then often still to come out short in terms of products while at times being detremental to the environment or peoples health, that is just mind boggling. Do i know a better way, nope there you have to ask maybe someone like Chomsky.

[@doloreswatson6269]

I think it’s simple and obvious. There’s been a concentration of power. That power prefers to steady private and keep control

[@ayoCC]

I think private equity is a better buzzword to get clicks. Maybe try a different title, like "Is private equity eating up the world?" "why public is losing to private equity." "Private Equity is killing the public corporation"

[@waqark123]

Amazon is worth 2500 times of the IPO price adjusting for stock splits.

[@J-D248]

Glad I'm not the only one that caught that.

[@hbk9006]

Public compay are accountable, private company are shady. End of story.

[@saltymonke3682]

LOL, tell that to Enron, Lehman, Boeing 😂😂😂😂

[@urbanstrencan]

Great video, keep up with great work bringing us interesting topics like this ❤❤😂

[@AnotherBrownKid]

At least get your facts right. Amazon is NOT 10x from where it IPO'd. its hundreds times more than that.

[@mtsarch]

He probably forgot about stock splits. AMZN is roughly 2500x from its IPO price.

[@dcklee11]

I see the use of private capital fueled by pension funds negating the need to list.

[@percywillis]

Na people always want to get rich overnight. So there will always be someone thats wants to open up 300 stores nationwide instead of sticking with 8 regional ones.

[@Dman8s]

what effect does crypto currency have on public markets ?

[@dant.3505]

Scams, grift, outright thievery, crypto has them kinds of effects on public markets or ANY market.

[@mattcoleman6780]

Great video.

[@evovn5835]

why remove the "lol"

[@siddharthlohochab8029]

I can still see it on my side. maybe they are A/B testing multiple thumbnails

[@Yomamaissoo]

Germany is sour because its economy is falling apart. The us economy is doing fantastic

[@kinngrimm]

When private companies can not be as well regulated as public once, shouldn't then the question rather be either how to better regulate private companies or if that isn't possible, why allow for private companies at all? Though i would suspect a differance needs to be made in terms of size of these companies. Euqally where it comes to their budgets and also the number of worker they employ. Small companies with 1-500 employed and maybe a few million in earnings i suspect are easier to regulate, but have a harder time with these regulations while medium to big companies with maybe 500 to 100 thousand plus employed are more difficult to regulate but they have an easier time handling those regulations due to synergies and being more easily able to afford hords of lobbyists and lawyers.

[@lotus-chain]

PE Kill economy in long term positions. IPO the solution for long term positioning. The world economy need to a reform

[@rehakos]

Thumbnail 👏😄

[@lvill3633]

pump and dump.

[@patrickgz]

short sell along the way down

[@shoaibjanjua1516]

True

[@jaguar5969]

That means if they buy it back, nobody ownes then, so back to people.

[@justinlegault8700]

lol Amazon is worth 10 times more than ipo in 1999. 4:30

[@ccc3]

🤦‍♂️ And then went on with Microsoft price. That double rookie blunder took away the video's credibility

[@manuelcunharocha8889]

Stocks sold for 18 US$ They're 180 US$ now What's wrong?

[@geokon3]

​@manuelcunharocha8889 They have split the stock many times since, so there are a lot more stocks now. If you bought 18$ of Amazon stock then, now you would have 42525$ worth of stock

[@buschinpolen]

@@manuelcunharocha8889 splits

[@TheFirebird123456]

​@@manuelcunharocha8889forgetting stock splits

[@albertoserrano67]

Private investors is all you need to know

[@kinngrimm]

11:11 "elephant" you sure you don't want to call them Hydras?

[@prashanthb6521]

Private equity market has to be merged with Public equity but after retaining some privacy. It should become a subclass of the stock market. But they should be tradable by public.

[@mycosys]

They dont want you in their club, and you cant force them to let you.

[@saltymonke3682]

Who TF cares, you can't force people to get listed and its additional legal and administrative costs

[@richardcampbell7255]

“Shipping expeditions” better known as colonization. Why sugar coat it?

[@Never-ending_]

It doesn't need to be colonisation. Most of It was simple trade. Colonisation was mostly a govt endeavor.

[@stompysnake8233]

Nobody cares

[@Melior_Traiano]

What have the Romans (Europeans) ever done for us?

[@dant.3505]

Yeah, nobody cares anymore about that old, tired, worn-out joke of dissing colonialism. You can only beat a dead horse for so long. Folks lost all interest.

[@haggai3.477]

*INSIDER TRADING*

[@AniKayode]

Are rich people taking over your entire lives? What does that mean for investors?

[@topi2209]

what kind of public of prediction that harvard professor made XD

[@lazurusknight2724]

IMHO there are only 2 co-competing priorities for any company, corporation, partnership or business: 1. producing a good or service for the wider community and 2. providing as much employment as possible to members of the wider community. Stockholders, whether private or public, constantly sacrifice jobs for profit, and this has to stop unless we move to UBI, otherwise there will be no way to earn your keep in the not-too-distant future

[@pauldalpozzo]

This is not interesting, it’s oligarchy.

[@ammarsawi]

Please take care of D.r R H

[@AH_99_77]

Listing of company on market , buying & selling shares of that stock is easy , but what's difficult? To make gains .... 99.9% people losses their money in stocket market , or any other currency trading based on hedge funds, trade on these currencies pairs are too costly because of high spread fee, To be professional in this field is most difficult work in the world , 99.9% even losses their money & i have also seen people's who spend 15-20 years in this field to learn but failed , it's very complicated & every can't understand this If it was easy every one was rich🤷🏻‍♂️ Once germany was going to bankruptcy in a day or two because of this hedge money , But then he got loan from other country to get it currency back to stable ,

[@urimtefiki226]

I am inventor and I have not been paid even one euro for my work, the bullshiter is making investment through plandering of my invention.

[@matt.stevick]

no

[@m3talHalide-rt2fz]

wild how much the intro seems to miss the dynamic; the mag 7? theres been a massive consolidation of capital, not a shrinking of the % of GDP associated to public companies. there are larger private companies, spacex, some financials, but the lion share is public. OWNERSHIP and especially voting rights are mostly held by institutions, but more money than ever is in institutionally managed retirement accounts and the funds used in them. it would be easier to ask why spacex remains private. if a company would rather not be bound to regulation, shareholders, and quarterly proctology exams, and has the money to stay private, why give their future profits away? imagine you started a business with a simple loan from a bank, after repaying the loan would you want them asking for future dividends? being able to remain private is a blessing when its a choice. cases like michael dell who took his company private to fix mismanagement are not as common as they should be, but thats mostly because there arent many michael dells. it was his focus on his company, knowing it better than any investor or manager that was able to bring it back, not public accountability.

[@dant.3505]

Seems like you are going out of your way to not call them what they are: CORPORATE RAIDERS there is never a good outcome.

[@rodrigomoura1085]

It work for Germany economy? 😂😂😂😂

[@rodrigomoura1085]

@@Melior_Traiano Does it work for Germany's economy? 😂😂😂😂

[@nothingavailableleft]

I listen to FT and CNBC reporting with no problem as a non native, please tell this reporter to use more commonly used words when describing complex concepts. Key terminology needs to be stated as it is, of course, but everything around it doesn't need to be so complicated. lured, aghast, storied corporations, ravenous animal spirits, what? We're not even 1 minute in. This is a financial bit not a C2 english course. Reserve the more specific words for written reporting, where that demonstrates a journalists skills.

[@tahsinaaron5563]

1+1+1

[@dc-pg5or]

not even a single woman in this video? the lack of diversity is very disappointing from a public broadcaster

[@ayeinharsh]

Wtf mate 😂

[@SamHurlting5182]

Get a life lol 😂

[@caleb7799]

we don't really want to dilute this program, do we now?

[@Melior_Traiano]

Stockholders were depicted as being solely Asian. I feel incredibly offended.

[@Mota_Kim_Jong_Un]

Come to my country 🇰🇵 We also have a lot of woman 😂😂

[@dan_draft]

1:01 DEI? Haha

[@gfan003]

On statistics That 16 million US citizens commited zero dollar shopping sprees, no wonder NY shopping district is like a ghost town now. Harris promoted this by raising the limit for Petty crime from 950USD to 1500USD!!😂😂😂😂

[@prasannadeorukhkar9052]

In China... it's other way around...hope DW is able to remove their Chinese Goggles