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Tag: proxies

Proxy voting and delegated voting are procedures for the delegation to another member of a voting body of that member’s power to vote in his absence. Proxy appointments can be used to form a voting bloc that can exercise greater influence in deliberations or negotiations. A person so designated is called a “proxy” and the person designating him is called a “principal.” (Wikipedia Feb 2010)

US Equities

Who is holding America’s stock proxies?

Over 55% of corporate stock that belongs to US Households and Nonprofit Organizations is held indirectly through intermediaries who have the power to vote these shares.

The major holders of these voting powers are pension plans and mutual funds.

This means that it is not shareholder-owners that control most US public corporations, but hired intermediaries, each of which have conflicts of interest.

1995-2004

Intermediaries control corporate America

Decline in Direct Equity Ownership

The percentage of equities belonging to households and nonprofit corporations increased from 42.8% to 55.4% between December 1995 and December 2004.

Over 55% of the equity shares of US corporations which belong, in the final analysis, to US households and nonprofit organizations, are held indirectly through intermediaries, such as life insurance companies, private pension funds, government retirement funds, and mutual funds.

Featured articles on inside pages

Stock buybacks

WSJ exposes the 9/11 caper

In a major exposé of misused executive options, the Wall Street Journal ran a front page article, reporting that as stocks sank after the the 9/11 attacks, scores of companies rushed to issue options to top officials. Some executives reaped millions.
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Securities Analysis

How inflation impacts EPS and PE ratios.

The Obama administration and Congress are laying foundations for high inflation. US equity investors should consider the effect of a rapidly devaluating currency on EPS and PE ratios. More ...

US Politics

Why are the Super-Rich often liberals?

If we are to believe the old adage that, 'people vote their pocketbooks', why are so many of the Super-Rich ardent supporters of the Democratic Party? Why do the liberal Super-Rich seem to act in a way that is so contrary to their selfish interests and economic well-being? Here I show how capital flow analysis of the Federal Reserve flow of funds accounts provides an answer to this apparent conundrum. More ...

US equities

GAO favors overly-optimistic projections

In a study of the effect of the retirement of Baby Boomers on the price of equities, the GAO assumed that equities will provide real returns of 7% over the next decades. This figure is often cited in Wall Street promotional literature, but has no scientific basis.
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US Bonds

The collapse of the dollar and US bonds?

The extreme spending of the Obama government, combined with irresponsible bank lending policies promoted by Barney Frank and Chris Dodd, portend rising interest rates, the collapse of the bond market, and the end of dollar supremacy. More ...

World Economy

Working off the US trade deficit

Foreigners hold $16.8 trillion in US financial assets as a result of selling more goods to Americans than they buy from them. Since the 'deficit' is in dollars, the US has no problem in 'paying it off'. More ...

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2010-07-29 11:44