Grow Your Money: The Rhodes Society
Corporate Actions – Diamond in the Rough or Just Trash?
- Author: Vários
- Narrator: Vários
- Publisher: Podcast
- Duration: 0:07:35
- More information
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Synopsis
Remember those funky Snapchat Spectacles? People waited hours in line in New York when they came out. They sell on Amazon for a hundred and thirty bucks. Twelve months later the company wrote down forty million dollars because of unsold Spectacles. The stock tanked. Hi! I am Doctor Scott Brown and I am here to show you what works in the investment markets. I also show you what does not work and how to avoid it. Do managers of large corporations habitually overinvest in lower value pet projects? This is an important question. If they do invest in crappy stuff it destroys the value of stock investment. For this reason, some academics argue that dividends should be forced to pay or increased. But following such a hard stance requires conclusive proof of widespread bad corporate management. Is management that bad in corporations today? We can learn a lot from corporate actions. In the typical top management hijacked firm of today a corporate action must be approved by both the directors and the CEO as pr