Question

Hi Sanaa. You made an interesting suggestion related to the public release of shareholders owning more than 1% of a company’s outstanding stock. Such a process would certainly shed some light on independence, objectivity, and personal interests. I would love to get your classmates ideas on this as well. Class, what are your thoughts on the advantages and disadvantages of such an approach? Do you see any issues related to privacy? Why or why not? Brandy

Answer 1

Answer :

Thoughts on Advantages & Disadvantages of an Approach -

Advantages:

1. Minor investors, who hold less then 1% will have the capacity to think about the real investors of the organizations with the goal that they can take choice to remain contributed or exit.

2. Different specialists will likewise ready to know the stake of investors holding more than 1 % .

Disadvanage:

1. It will affect individual enthusiasm of investors of the organization holding over 1%. Every individual will have the capacity to know the speculation made by them.

Open arrival of such shareholding ought not be finished.

Anyway it is smarter to display the same in monetary explanation.