Robinhood Traders: It’s About More Than The Shares

Photo by Anete Lusina from Pexels

A share is an actual right to ownership of a company; it is not a separate entity.

When you purchase a share of Disney, you are not purchasing a token that represents the value of Disney’s business, you are purchasing a part of Disney’s business. The value of that share is supposed to track the underlying value of Disney, but it has been abstracted so that it can be traded on the exchanges.

As a partial owner of the company, you as a shareholder have the right to make decisions about how the business is run.

This statement startled all the people I talked to because they had been deleting their proxy emails from Robinhood without even bothering to read them. Those emails are sent because the company is reaching out to you — one of the owners — and asking you to vote on things the company wants to do. In a sense, they’re asking you to do your job, which is something you signed up for when you became an investor.

I’m an IT consultant, I studied physics, and I enjoy securities analysis in my free time, when I’m not writing. He/him or they/them. BLM!

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