1. Why does a publicaly traded company have to show continuous rise in profits? Why arent steady profits good enough?

A publicly traded company has to show continuous profit growth because of how investors think about money. Imagine you have $100, and you want to invest it in a company. If Company A makes the same $500 million every year, but Company B increases its profits from $500 million to $550 million to $600 million, which one would you pick? Most people would choose Company B because it looks like it’s growing, meaning their investment could be worth more in the future.
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