Profit extraction mechanism

The term "profit extraction mechanism" usually refers to strategies or processes that businesses or investors use to realize profits from their investments or operations. This can encompass a range of tactics and financial engineering designed to convert the value created within a business into cash or other forms of compensation. Here’s a breakdown of some common profit extraction mechanisms: 1. **Dividends**: Companies can distribute a portion of their earnings to shareholders in the form of dividends. This is a straightforward mechanism for returning profits to investors.