Proton will still be a for-profit company that will be majority-controlled by a non-profit. The non-profit will not own all of the business either, so there will still be profits going to shareholders.
Any excess profits not reinvested are paid as dividends to share holders. However, if you’re reinvesting that money from dividends into buying more shares then there’s no difference between the two. Think of it like this. If I’m a company and I have a dollar, I can either invest it in the company and make my value go up by a dollar or give my share holders a dollar. Of course, in the inverse situation, the share.holder can just sell a dollar worth of stock and the situation is the same.
So there really isn’t too much of a difference between the two.
Seems like all that will change is the fact that all profits made will be reinvested in the company, im not an expert though, so i may be wrong
Well that’s cool:). Remove the profit motive/surplus goes a long way to slow down evil.
Proton will still be a for-profit company that will be majority-controlled by a non-profit. The non-profit will not own all of the business either, so there will still be profits going to shareholders.
Many for-profit companies do this as well.
But are they also required to do so?
Any excess profits not reinvested are paid as dividends to share holders. However, if you’re reinvesting that money from dividends into buying more shares then there’s no difference between the two. Think of it like this. If I’m a company and I have a dollar, I can either invest it in the company and make my value go up by a dollar or give my share holders a dollar. Of course, in the inverse situation, the share.holder can just sell a dollar worth of stock and the situation is the same.
So there really isn’t too much of a difference between the two.