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Govt has a big say-so, especially when they are shareholders. Not only do they regulate, but they are also more importantly, controlling shareholder. They use proxy voting through corporate governance. Go look at who those "institutional" investors are. Govt investment funds are the largest on earth.
the shareholders vote on who is on the board of directors, and who is CEO. the board of directors sets the pay scale for the CEO. and it depends on what type of stock is owned by the shareholders as well. for instance preferred stock is NON voting stock, which is usually what institutions buy so they are the first to get paid dividends. common stock is the voting stock, and that stock is usually held by the CEO and the board of directors, and individual investors.
No the government has no right to tell a private company how to compensate their employees. If you want that, move to Korea as it is the only part of the world that operates this way.
Do you really want the government to tell you how much you should make?
Publicly traded is not private. Korea and Russia were just more transparent about it.
the shareholders vote on who is on the board of directors, and who is CEO. the board of directors sets the pay scale for the CEO. and it depends on what type of stock is owned by the shareholders as well. for instance preferred stock is NON voting stock, which is usually what institutions buy so they are the first to get paid dividends. common stock is the voting stock, and that stock is usually held by the CEO and the board of directors, and individual investors.
As I stated. Go count up and look at who owns the shares. Govt accounting is widely available.
To state that govt has no say-so in publicly traded corporations is simply false.
As I stated. Go count up and look at who owns the shares. Govt accounting is widely available.
To state that govt has no say-so in publicly traded corporations is simply false.
unless government has common stock, they have no influence over company policy because preferred stock is non voting stock. they would need common stock to have a say in company policy. and like i said, institutions buy preferred stock so they get first priority in getting paid dividends.
You are over simplifying both preferred and common. Their features and who buys.
As to institutional investors not sure what you are implying, but since we are being topical.
https://en.wikipedia.org/wiki/Institutional_investors
quote:
An institutional investor can have some influence in the management of corporations because it will be entitled to exercise the voting rights in a company. Thus, it can actively engage in corporate governance. Furthermore, because institutional investors have the freedom to buy and sell shares, they can play a large part in which companies stay solvent, and which go under. Influencing the conduct of listed companies, and providing them with capital are all part of the job of investment management.
Day to day ops are much more minor in the overall scheme of things.
Stating govt has no say-so over a publicly traded corp is in no way true though.
Common stock has the additional benefit of enabling its holders to vote on company issues and when choosing the company's leadership. Usually, one share of common stock equals one vote.
Quote:
Like common stock, preferred stock represents ownership in a company. However, owners of preferred stock do not get voting rights in the business.
this makes my point about common and preferred stock. i do understand the benefits and drawback of each kind of stock. and most institutional investors will buy preferred stock as preferred stock gets the biggest benefits of priority in the distribution of dividends, and if the company goes belly up, they get inline right behind the creditors so any money that gets paid out after the creditors get theirs, preferred stock holders get paid.
this makes my point about common and preferred stock. i do understand the benefits and drawback of each kind of stock. and most institutional investors will buy preferred stock as preferred stock gets the biggest benefits of priority in the distribution of dividends, and if the company goes belly up, they get inline right behind the creditors so any money that gets paid out after the creditors get theirs, preferred stock holders get paid.
There are different types of stock. That black and white statement about voting rights and common and preferred is inaccurate. Stocks Basics: Different Types Of Stocks | Investopedia
quote:
Preferred stock represents some degree of ownership in a company but usually doesn't come with the same voting rights. (This may vary depending on the company.)
...
Common and preferred are the two main forms of stock; however, it's also possible for companies to customize different classes of stock in any way they want.
Many different types of preferred. Preferred stock
quote:
Preferred shares are more common in private or pre-public companies, where it is useful to distinguish between the control of and the economic interest in the company.
Also common stock is the most common.
Now as to institutional investor assumptions. (pdf page 5) Institutional Investors and Stock Market Liquidity: Trends ...
quote:
By 2010, the total market value of common stocks had increased to $17.1 trillion,
and institutions had increased their holdings to $11.5 trillion, or 67 percent of all stocks.
I suggest you go read the Citicorp memos posted a few pages back. You're just naive and gullible because you think you have a chance to be one of them.
Was I talking to you? I suggest you mind your own business.
You are over simplifying both preferred and common. Their features and who buys.
As to institutional investors not sure what you are implying, but since we are being topical.
https://en.wikipedia.org/wiki/Institutional_investors
quote:
An institutional investor can have some influence in the management of corporations because it will be entitled to exercise the voting rights in a company. Thus, it can actively engage in corporate governance. Furthermore, because institutional investors have the freedom to buy and sell shares, they can play a large part in which companies stay solvent, and which go under. Influencing the conduct of listed companies, and providing them with capital are all part of the job of investment management.
Day to day ops are much more minor in the overall scheme of things.
Stating govt has no say-so over a publicly traded corp is in no way true though.
SWFs introduce even more opacity into the mix.
This isn't necessarily true. I work for a FINRA registered firm and everyone at my company is restricted from engaging in certain types of activities in the marketplace. Most institutional investors have every email, every phone call, every investment tracked by the government and kept on file for years. I know mine are. Hell, the guys we use for economic research are legally not allowed to invest in any public company, bond, ETF or REIT because of current government regulation of people in that industry.
No surprise. Everything is going exactly as planned. I've said this before. The large middle class was an 20th century anomaly. It is now returning back to the norm of history. The break down being the 1% controlling virtually all of the wealth, with a small middle class of skilled workers making up up about 9%(Think doctors and engineers, in the old days they were the merchant and trades class). The rest of the 90% will be peasants and paupers.
Quote:
Originally Posted by HappyTexan
I totally agree. We had the good times but they can't last forever.
History works in cycles and always seems to repeat itself in one way or another.
I believe we're going through a very soft Great Depression that will change US society.
And I see the same thing happening that you comment on as well.
And it does not matter if Democrats or Republicans are in power.
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