The problem is you've now screwed all of the people who own the stock. So you diversify the ownership of this particular company, but all of the mutual funds, a

The problem is you've now screwed all of the people who own the stock. So you diversify the ownership of this particular company, but all of the mutual funds, and other people who own the stock just get to suffer a huge loss? And what prevents another entity from buying up a huge portion of the stock using a different company? This new entity could be controlled by some other billionaire or group and you gained no diversity at all.