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This title, "S&P 500 to exclude Snap after voting rights debate" is wrong. S&P 500 is moving to bar all stocks with multiple classes with different voting right
by Dobbs 9y ago
This title, "S&P 500 to exclude Snap after voting rights debate" is wrong. S&P 500 is moving to bar all stocks with multiple classes with different voting rights. Existing stocks in the S&P 500 are grandfathered.
Personally I'm a fan of this. Multiple voting classes seem to be abused. Take the recent Ford case where the Ford family owned a very small percentage of shares, but had an overwhelming share of the voting power. If I understood it correctly it took basically unanimous voting from all other shareholders to remove this imbalance.
- dsjoerg 9y agoI tried to rewrite the headline to address your criticism, here's my first attempt: "S&P 500 to exclude stocks without voting rights, starting with Snap." However it's longer and headlines need to be short. And it needs to have Snap in the headline or to attract interest.
- gregshap 9y agoSNAP is not an existing member of the S&P 500 They were already unqualified until now, because they lack positive earnings. [https://en.wikipedia.org/wiki/List_of_S%26P_500_companies https://en.wikipedia.org/wiki/List_of_S%26P_500_companies]
- kgwgk 9y agoGood point, because the chances of arriving to profitability are not much higher than the chances of non-voting shares being granted voting rights.