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Comment on But how would they be able to live on that?

re-inveermemt

I don’t know what that means- but how do these options not still increase the wealth of the company and therefore increase the wealth of the owners of the company

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ChicoSuave@lemmy.world ⁨8⁩ ⁨months⁩ ago
Re-investment. I figured a typo like that would be safe to assume but oh well.

Measuring the value of a company would be valuations just like now with shares equaling the value of the company. The owner would be divested from the company as it increased in value to separate the two. The value of the company would then be independent of the owner’s share in it.

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- aidan@lemmy.world ⁨8⁩ ⁨months⁩ ago
  
  Re-investment.
  
  I thought that, but that doesn’t change the wealth of the person assuming the investment is successful.
  
  Measuring the value of a company would be valuations just like now with shares equaling the value of the company.
  
  Valuations are often very wrong, and missing for privately held companies.
  
  The owner would be divested from the company as it increased in value to separate the two.
  
  Divested and given to who?
  
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  - ChicoSuave@lemmy.world ⁨8⁩ ⁨months⁩ ago
    Measuring the value of a company would be valuations just like now with shares equaling the value of the company. The owner would be divested from the company as it increased in value to separate the two. The value of the company would then be independent of the owner’s share in it.
    
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