Wednesday, April 11, 2012

Shareholders are owners of a company

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

As I mention in the video, this discussion comes up a lot unfortunately. That shareholders are not the owners of the company. I see the (failed) logic that the CEO and board are in charge and run things. Shareholders are to sit back and keep their mouth shut because management knows the company better then us. Knowledge of a company doesn't stop people from investing in it nor from being hired for the board.

Another example are lawsuits. BP Prudehoe Bay (BPT) is a popular oil royalty land trust for the North Slope of Alaska. Another company caused damage to the pipeline and it had to be shutdown. BPT sued for loss of income and damages and won. Being a royalty land trust and no real capital use for the money, it was passed onto the unit holders in an extra large dividend.

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

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