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Because a shares without a vote cannot protect themselves from being diluted or wildly uneven dividends and buybacks. It has happened in the past.
by whyileft 10y ago
Because a shares without a vote cannot protect themselves from being diluted or wildly uneven dividends and buybacks.
It has happened in the past.
- bko 10y agoOf course there is a risk in that, and that's why non-voting shares usually trade to a discount to voting shares. If the voting members fleece the non-voting members, this will make it increasingly difficult to raise money in the future without diluting ownership (GOOG vs GOOGL is about 3% discount)
- stale2002 10y agoThen don't buy those shares.
- whyileft 10y agoCan you explain why it will be different this time around to have an unregulated public market that lead to the great depression? I ask because your comment would apply to any regulation in the public markets. Can you at least explain why this specific situation would not be problematic?