Re:Why privatisation has been a costly failure in Britain
by Retric on Tuesday July 11, 2023 @09:41AM
(#36680836)
If the owners want cash they can do the same thing, take out a loan vs the value of the stock to buy more X. The advantage when a company does it is your liability stops at the value of the stock where leverage isn’t.
Critically, not every investor wants every investment to be highly leveraged in this way. It’s instead the people running the company who have incentives to do these kinds of transactions.
>The only thing they are competing against is which company can extract money the fastest (at the expense of the company and English citizens). Second of all, from the article, they aren't spending the raised money on capital investments.
The owners of the company are competing with others in society to buy land/houses/cars/services/etc.