eli5: How many stocks must one own before getting to have their input at least heard by a company?

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eli5: How many stocks must one own before getting to have their input at least heard by a company?

In: Economics

5 Answers

Anonymous 0 Comments

There are actually people who buy one share in every local company just so they get to be invited to their shareholders meeting. In addition to free coffee and snacks and ability to talk to actual business people they do get to sit inn on the meeting to hear everyone’s opinion and voice their own. However as to actual power over the company there is only one vote per share. So it is easy to just ignore them. In order to have any sort of power over the company you need to have a significant fraction of the shares, just like in a democracy.

It should also be noted that some companies also have non-voting shares. The intention is to be able to separate the majority and minority shareholders. It is easier to buy these non-voting shares but you will not get any votes like the other shareholders. You still get any dividend or offers of buyback that everyone else does though.

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