Still, parents are supposed to love their issue equally.
Hence the equal allotment of bequests.
The Agent-Principal Conundrum
By: Dr. Sam Vaknin
Also published by United Press International (UPI)
In the catechism of capitalism, shares represent the part-ownership of
an economic enterprise, usually a firm. The value of shares is
determined by the replacement value of the assets of the firm,
including intangibles such as goodwill. The price of the share is
determined by transactions among arm's length buyers and sellers in an
efficient and liquid market. The price reflects expectations regarding
the future value of the firm and the stock's future stream of income -
i.e., dividends.
Alas, none of these oft-recited dogmas bears any resemblance to
reality. Shares rarely represent ownership. The float - the number of
shares available to the public - is frequently marginal. Shareholders
meet once a year to vent and disperse. Boards of directors are
appointed by management - as are auditors. Shareholders are not
represented in any decision making process - small or big.
The dismal truth is that shares reify the expectation to find future
buyers at a higher price and thus incur capital gains.
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