I work high up in large business, so I know how it works.

Let's say you're correct, so what? Let's say I have $10,000 to invest. I notice that the electronics sector is a good place to invest based upon recent trends, so I want to invest there. I do some research and conclude I will either invest in Apple, or Samsung.

If I choose Apple and they give me a 5% return on investment but Samsung gives me 8%, I will invest with Samsung. My money isn't a charity, it's an investment.

I am relying on the company to do the best job that they can to provide me with a return on my investment because I would actually LOSE money on my investment, and if I keep losing money, that would be quite irrational of me to keep investing, wouldn't it?

And if Samsung ends up getting 70% of the investment and Apple only 30%, Apple is going to go out of business, and it should. This would fundamentally mean that Samsung is the superior business in that sector and Apple is doing so poorly that it should not exist.

Investors by the way do not obtain a fixed percentage of profit from a company's income statement. What they receive depends on a myriad of things like earnings through dividends, equity appreciation, interest rates, type of investments, etc.

Publicly traded companies have benefits over private. They for instance, can produce large amounts of money through selling stock or bond issuing, and shareholders being able to easily buy/sell shares gives good data on company value. Private businesses on the other hand often have more limit on raising funds, so it can make it very challenging, if not impossible, for private companies in some sectors to compete with publicly traded ones. Keep in mind it's also more complicated than that.

I can give you an example from my business life as well. About 5 years ago a mid-market business (let's just say around 5 billion in annual revenue) was bought by a private equity firm. The reason was the business was failing. If not for private equity, the business likely would have died.

Through private equity and their investor base, the business is still afloat and doing even better. Private equity was able to invest in the business to make it more profitable, but they don't want to do that with nothing to gain. The goal in that investment is they make enough of a return in the future that they made a profit off the endeavor. It's a risk - the firm could have invested billions only to see nothing but a loss. Do that too often and the entire firm would fail and thus, close.

A lot of terminations were done too, but new people were also brought in and a lot of changes were made.

But without giving to that investment, the business would have failed and 100% of its employees would have been without a job. This business currently employs over 10,000 people, mind you.