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> There's intense political pressure to not punish shareholders for management's misdeeds Rightly so, IMO. I invest almost exclusively in index funds, which me
by chias 7y ago
> There's intense political pressure to not punish shareholders for management's misdeeds
Rightly so, IMO. I invest almost exclusively in index funds, which means there's a good chance I'm a shareholder and don't even know it. I like to think that it wouldn't make sense for me to be held responsible.
- scarejunba 7y agoYou're not held responsible. The company is. You just made a bad investment through bad fortune. You get to sue the company for losing you money.
- brianpgordon 7y agoThe reason your index funds return so much is that you're buying a share of ownership in the company. That includes upside but it also includes downside. If there were no downside you'd be getting exactly money market-like returns.
- mruts 7y agoThe downside of equities is not being sued as a shareholder of a crooked company, it's the risk and long-term exposure you bear from your share of ownership and the future cash flow of the company.