Call it the Jeff Skilling and Ken Lay approach to business. The “Its not my fault if Im ignorant of whats going on ” defense. Ignorance is bliss.
Repeat after me, Ignorance is Bliss. Its the new shareholder credo.
If shareholders are ignorant of their responsibilitiesas owners of a company, then company management can do anything and everything “in the name of shareholders”
If shareholders are ignorant, then brokerages can do whatever they want with the shares of stock they hold for theircustomers, which in turn enables people like Patrick Byrne and hiscreepy followers toscream and yell about naked shorts.Shareholders have no idea what happens with their stock,so whenpresented with nefarious scenarios, they almost make sense.
So lets set some things straight.
Shareholders,there is a good chance, particularly if you invest in companies that have a large short interest, that your shares will be LOANED out to traders who want to short the stock.
This is not a loan that has no value to you, the shareholder. You are PAID for loaning the stock. In fact, for some stocks, you are paid quite a bit. So if you own a share a stock and you take money for it being loaned out, then you have to deal with the consequence that the person who borrowed your share may vote the share. In fact, your shares may not only be loaned to someone trying to short the stock, it may be loaned out to someone who only wants toVOTE THE STOCK.
You get paid for loaning the stock. Its your job to know what rights you have to the share of stock that has been loaned out. It is your job to discuss with your broker whether or not you want your shares loaned out. If you get paid to loan the share, and its voted in a way that goes against your interests, you can scream all you want, but you prostituted your rights. You is a corporate ho.
Shareholders, there is a good chance that a CEO, who lives in a totally different world than you do is telling the media that he is doing, what he is doing, in your name. Firing those people to increase earnings by 1c per share. Its for you. Outsourcing jobs. Its for you. Making windfall profits because oil prices are skyrocketing, its for you. Paying the last CEO who just quit on you tens of millions of dollars. Its for you. Paying himself tens of millions of dollars, and negotiating a Platinum parachute. Its for you. Is this what you, as a shareholder wants ?
Sharedholders are supposed to be the owners of the company. Shareholders are supposed toselect the board, which in turn hires the CEO. Shareholders are supposed to weigh in on corporate issues and direction. Are you exercising your rights as a shareholder ? Or are you a corporate Ho ?
Are you justhoping the stock price goes up ? Are youoblivious to the fact that the people running the company might be sellingout your personal ethics ? Are you oblivious to the CEO andofficers putting their own personal interests first ? Do you even notice when the CEO of your company does something that conflicts with your beliefs, saying “its for you, the shareholder”. Has it dawned on you that the CEO and board of the company you own shares in thinks you are so docile and clueless about whats going on they dont care what you really think ?
Its time for all shareholders to realize they have a responsibility as owners of stock. That if you dont fulfill that obligation, you are nothing more than a corporate Ho and your share of stock is nothing more than a baseball card, worth what the next Ho will pay for it.
Dont be a Ho.