This is a matter brewing in the U.K. but it also comes up from time to time in the U.S. It has to do with the voting rights of shareholders in U.S. stocks.
There are some corporations with two types of common shares, voting and non voting. The New York Times family, for instance, has special voting stock that controls ownership. Other non-voting company shareholders cannot vote.
There has been clamor for change. For example, talk that shareholders who hold their common stock for a longer period should have more voting power than those who buy shares for shorter periods, for purposes of trading. Or restrictions on those who buy them to exercise control for company takeovers.
The conventional wisdom in the past was, if you did not like management you simply sold your stock, instead of trying to take the company over.
No comments:
Post a Comment