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What do you think the shareholders of a typical public company look like? I think you’ll find a small percentage owned by rich private individuals/family offic
by dan-robertson 4y ago
What do you think the shareholders of a typical public company look like?
I think you’ll find a small percentage owned by rich private individuals/family offices, some owned by private investors like insurance companies, and the rest held by pension funds or mutual funds which look like big shares on paper but don’t really exercise control and correspond to lots of tiny holdings by people who range from poor to ordinary to a small number of quite wealthy people.
That is, I think the usual answer to “who are the shareholders of this public company?” is “ordinary people through their pensions or investment accounts, skewing a little bit older and richer”. Some companies have a relatively large stake owned by some private person or fund, and others have a big share owned by their original founders or their families, but in that case those people would be named instead of just saying ‘shareholders’.