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That is fundamentally not different from a fine, which is ultimately also paid completely by the investors.
by matt4077 10y ago
That is fundamentally not different from a fine, which is ultimately also paid completely by the investors.
- tremon 10y agoYes, it is completely different, because the nationalization step strips the original investors from all power.
- matt4077 10y agoIt only strips them of money, if they're willing to use money to buy the stock again in the auction.
- antivw 10y agoIt is fundamentally different, because it targets equity, not operating capital. Fines can be mitigated by raising prices so that equity-holders shift pain to consumers. Stripping equity on the other hand means that you change who profits from sales.