Corporations used to be owned by stockholders who all had a proxy vote. Not today. Various funds own the major percentage of outstanding stock in a corporation and funds have no proxy vote; even though, they own the majority of the stock. The individual stockholders who own the minority of the outstanding shares have all the voting power. Very rich individuals like David Rockefeller have the voting rights. It's estimated that the Rockefeller family own 4.5% of 90% of the world's corporations and control $10 trillion of wealth around the world. The money is hidden away in a huge array of foundations most having a flavor of being charitable but really are fronts for other purposes. Other rich families do the same.
So the majority of companies are owned by mutual funds, pensions funds, other various types of funds but controlled by a small minority of people with all the voting rights. The funds marketed as a conveniant way to diversity one's investments has actually put the power of corporate America into very few hands.
Corporations used to a tool for various investors to own a part of a company and have voting rights based on their ownership. Stockholders actually used to fill large rooms once a year during the proxy voting and influence the direction of the company. The stockholders used to have a lot of pull. Now they are just faceless owners of a fund that has no power.
So the majority of companies are owned by mutual funds, pensions funds, other various types of funds but controlled by a small minority of people with all the voting rights. The funds marketed as a conveniant way to diversity one's investments has actually put the power of corporate America into very few hands.
Corporations used to a tool for various investors to own a part of a company and have voting rights based on their ownership. Stockholders actually used to fill large rooms once a year during the proxy voting and influence the direction of the company. The stockholders used to have a lot of pull. Now they are just faceless owners of a fund that has no power.
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