Posted on Feb 12, 2016
I see a lot of discussion villifying corporations. Who owns corporations?
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Economics
Economy
Business
Responses: 9
1) Private corporations are owned by individuals, who represent the only shareholders.
2) Public corporations (generally the largest), are owned by all shareholders. That's either by people who directly or indirectly invest in them. So if you have a retirement account, it is likely invested in many corporations and you are effectively one of its many owners. Similarly if you have a pension account somewhere, they invest heavily in public markets, and you are a corporate owner by the proxy through your pension fund.
Many people also directly have a stake in a corporation by buying stock in companies (or mutual funds) through an investment account.
In short, people own corporations, including pretty much anybody who has a retirement or an investment account.
2) Public corporations (generally the largest), are owned by all shareholders. That's either by people who directly or indirectly invest in them. So if you have a retirement account, it is likely invested in many corporations and you are effectively one of its many owners. Similarly if you have a pension account somewhere, they invest heavily in public markets, and you are a corporate owner by the proxy through your pension fund.
Many people also directly have a stake in a corporation by buying stock in companies (or mutual funds) through an investment account.
In short, people own corporations, including pretty much anybody who has a retirement or an investment account.
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If folks looked at their mutual fund holdings or what their pension fund invests in, I bet many would realize for the 1st time ever, THEY are owners (stock holders) of many of the publically traded corporations.
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CDR Michael Goldschmidt
Ergo, when people hate 'Wall Street", they hate themselves. I'm only half serious. I have a problem with Wall Street, but mostly the banks which comprise the Federal Reserve, because they create money out of nothing and lend it out at interest, which would be considered counterfeiting and usury if we did it, but the government both likes them to do it, because it makes deficit spending possible. I have problem, too, with bailing out ANY private corporation, but that's a beef with the government, not with Wall Street.
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Corporations exist for one reason and one reason only - to make a profit for their shareholders.
People too often lose sight of that.
Those companies behaving "responsibly"? Just working the PR.
The ones that give back to the community? Look closely. It is often the product of a Tax Increment Financing (TIF) deal they had with the city or state. It is a contingency in order to secure a tax break.
Want to get mad at the big oil companies for making lots of money while you pay for $3 gasoline? If you are a shareholder (as I am), you are pretty pleased with the risks they took to secure additional supplies and keep the engines of the economy going and returning a tidy profit besides.
People too often lose sight of that.
Those companies behaving "responsibly"? Just working the PR.
The ones that give back to the community? Look closely. It is often the product of a Tax Increment Financing (TIF) deal they had with the city or state. It is a contingency in order to secure a tax break.
Want to get mad at the big oil companies for making lots of money while you pay for $3 gasoline? If you are a shareholder (as I am), you are pretty pleased with the risks they took to secure additional supplies and keep the engines of the economy going and returning a tidy profit besides.
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