June 20, 2016
In the many years I've been investing I've seen many examples of ways the rich can make money unethically with little risk of being caught In the last two months Yahoo has been taking bids for it's core business. One of their newest board members is a member of an investment group called Starboard. Starboard has actively fought with Yahoo for years over management issues. Starboard was paid several million dollars by Yahoo to cover cost of fighting Yahoo over their management practices. In what world does this happen for the small investor? Starboard is a group of investors. Why do they now have access to information that affects their investment before the rest of the public? Companies know that the average investor does not have the time or money to challenge the things they see everyday in the investments they make. When they turn to the only organization they know of to fight corruption in the stock market they are often told there isn't enough man power to look into their issue. Therefore the unethical practices continue.
Half of every board of directors should be made up of everyday investors that volunteer for the position. When directors are paid millions of dollars, granted stock options at no cost to them and able to get away with everything they say by reading a disclaimer before every meeting something isn't right.