The Sham of Shareholder Capitalism
taxresearch.org.uk
taxresearch.org.uk
I disagree. Most publicly traded companies are at the whim of their shareholders. If the stock price takes a dive, they need to make changes immediately to remedy the situation.
"In essence, we have a form of capitalism that claims to be for shareholders and yet that is clearly a sham. No wonder it is not working."
How is it not working? We live in the best time with the lowest poverty rates in the history of humanity. I can open up an account to trade on the stock market today with very little money.
Enron, Toys 'R Us and Sears shareholders would say that corporate governance is broken. They'd be right. At one time directors and officers had fiduciary duties to the corporation that shareholders could enforce, duties such those barring officers and directors from taking money positions adverse to the corporation. Now it's extremely difficult for shareholders to bring these derivative actions and the end result is anything goes but for the most blatant of corporate opportunity ripoffs.
> We live in the best time with the lowest poverty rates in the history of humanity. I can open up an account to trade on the stock market today with very little money.
Not sure if the ability to trade stocks with little money is good for anyone other than the bucket shop worker. I mean you can probably go to your local convenience store and buy a lottery ticket without an account. But as Dr. Pangloss said, this is the best of all possible worlds.