The stock holders are the owners. The owners can in theory direct the board of people representing their interests to do whatever, but generally stock owners want the board to do things they believe will make the value of the stock go up. Like any average owner of a private company, just we all get to watch since it’s a public company.
I feel like I’m trying to rationalize insanity, and I do understand the reason, but why does the burrito company need stock?
Money
On top of what others said, they issued it for cash so they can expand their business and pass the risk onto investors.
…Hence the risk now.
The stock holders are the owners. The owners can in theory direct the board of people representing their interests to do whatever, but generally stock owners want the board to do things they believe will make the value of the stock go up. Like any average owner of a private company, just we all get to watch since it’s a public company.
why not?