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This is an absurd idea. That would be a complete detriment to one of the greatest innovations in financing: Seperation of capital and responsibility. When you
by madsbuch 4y ago
This is an absurd idea.
That would be a complete detriment to one of the greatest innovations in financing: Seperation of capital and responsibility. When you buy a stock you know you can not loose more than the stocks value, so you dare to invest.
Also, would bond holders also be burdened with this? what about derivatives?
- BiteCode_dev 4y agoNot that absurd. People would start doing way more due diligences to invest. They would put pressure on the company to not do something stupid. You invest in bad actors and want to make money with it? Well you should pay the consequences for that.
- bdefore 4y agoThat great innovation is at the root of the market's disregard for negative externalities such as climate change. I'm not in support of jailing shareholders, but say a tax on the dividends of shareholders who front the capital for companies that impose a burden on civilization doesn't sound outrageous to me. Especially since fining the company directly doesn't necessarily discourage bad behavior at the tiers of power that have the ability to take a different path.
- poizan42 4y agoMaybe a better idea would be to force the company to emit new shares by some percantage of their total number of shares and transfer those to the state. That way shareholders lose a bit of value by dilution. And after enough fines the state will eventually reach a controlling majority ownership and can directly stop the company from further transgressions.