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>They threaten to dump stock of companies if those companies won't adhere to their ESG scores, which will crash the companies. Maybe I'm misunderstanding somet
by SomeBoolshit 4y ago
>They threaten to dump stock of companies if those companies won't adhere to their ESG scores, which will crash the companies.
Maybe I'm misunderstanding something here, but once the shares are on the market, what impact does selling them have on the companies?
- x-complexity 4y ago> Maybe I'm misunderstanding something here, but once the shares are on the market, what impact does selling them have on the companies? It affects the company's market cap, the wealth of the company's shareholders, & the employees/executives with stock options as part of their compensation plans. A significant drop will share price may even trigger the other shareholders to vote on changing the management in charge of defying the ESG mandate.
- yucky 4y agoSupply and demand. Dumping shares increases supply and has a neutral (or potentially negative) impact on demand. So price goes down.