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In general, if a company’s stock goes way down and that decline is attributable to bad management, then some entrepreneur can gather together a bunch of investo
by sethg 14y ago
In general, if a company’s stock goes way down and that decline is attributable to bad management, then some entrepreneur can gather together a bunch of investors and say “I can run that company better than the yoinks that currently occupy the boardroom. Loan me enough money to buy up 51% of those undervalued shares, and when I take over and turn the company around, the appreciated stock will make us all rich.”
However, FB Inc. is structured so that Zuck will retain a majority of the voting rights, even if every other investor stands against him (http://www.slate.com/articles/business/moneybox/2012/02/facebook_s_ipo_how_mark_zuckerberg_plans_to_retain_dictatorial_control_his_company_.html http://www.slate.com/articles/business/moneybox/2012/02/face...), so even if the price goes down to a dollar a share, investors’ only recourse will be to sell before it drops to fifty cents.