Corporations are the engines of America’s prosperity. Yet The Economist says they are an endangered species. In the last 15 years, the number of publicly listed corporations has shrunk by almost 50 percent! Worse, polls tell us corporations have lost much public favor and are sometimes even seen as destructive to the general welfare. The result is the threat of ever more regulation. What is happening? And why? Are corporations responding to the wrong incentives? If so, is it because today’s shareholders are more typically short-term speculators than long-term investors? What is the purpose of the corporation?