> Imagine distributing a firm's revenues directly to shareholders in real-time.
1) You surely wouldn't want to distribute the revenue but the profit. 2) You still wouldn't want to distribute the profit in "real-time" (whatever that means exactly). Part of the profit usually gets re-invested or put in a reserve, and so the company leadership must actively make a decision how to use the profits vs. what part to distribute. You can't make those decisions on a continuous "real-time" (say, daily or weekly) basis, though. This needs analysis, planning, etc.
I don't know the answer but it's an interesting problem to have.
Instant redistribution can be seen as a cost-center and entice strategic investors to work in the background for the firm. I am thinking like a Paid Advisory Committee.
It's really about getting the ball rolling sooner in terms of investor returns. If it's going to happen, why defer it? It could also be at the discretion of the investor.
1) You surely wouldn't want to distribute the revenue but the profit. 2) You still wouldn't want to distribute the profit in "real-time" (whatever that means exactly). Part of the profit usually gets re-invested or put in a reserve, and so the company leadership must actively make a decision how to use the profits vs. what part to distribute. You can't make those decisions on a continuous "real-time" (say, daily or weekly) basis, though. This needs analysis, planning, etc.