Eliminate dividend tax, AND limited liability....?

[The_Rorschach]

"We live in a society of actions and consequences. Nobody is forcing them to invest, and with no limited liability, I think it would encourage smarter investment, as well as better corporate behavior."

Sure. . .But we're talking about what most small investers regard with as much levity as the slot machines in Vegas. It may be a crap shoot, it may pay off, the odds are in their favour with Limited Liability. This is like requiring kids to study agriculture and lawn pattern theory before letting them use a playground, they have other concerns and for the most part, couldn't care less.

"Do they really, Ror??? Do you think a CEO, who himseld may sit on the board for another corporation, really fears the guy who plays around with some stock to see if he can make extra money??"

Oh I know they do. Not when they get as big as Jack Welch maybe, or Ted Turner, but when a buisness is first starting out, and I believe the tone of the article was speaking of Limited Liability in regards to venture capital, though I am working from a memory numerous hours old. When a corporation is first conceptualized, they need their investors more than their investor need them.

"The truth is, corporations are really only beholden to a select few of major share holders."

And that won't change by revoking Limited Liability.

"These shareholders are often involved with other corporations, and understand that the name of the game is making money, and if the persuit of that money means cutting a few corners, well why not?"

And you think shareholders who find themselves suddenly responsible for the company's debts and expenditures isn't going to be just as willing to cut those corners?

"You have criticized the apathy of the citizen, is it that different than the apathy of the investor? Have you not advocated compulsory serve for citizenry???"

Because I honestly see this as a more civilized form of gambling. I play black jack every year at the hundred dollar table at the Bellagio. I don't count cards, I haven't read books on strategy, and I don't care to. I could, possibly, make a living in Vegas gambling if I applied all my powers of perception and intellegence at mastering their system, but I don't care to. I think most shareholders feel similar in their investments.


"But that's the thing, your assumption is based on the idea that these corporations are no doubt up to no good."

All corporations are up to no good. They aren't in the buisness to provide a service, they are in it to make money, and money -as they say- is the root of all evil.

"Like the article says, negative stock would likewise hold its own value that could be purchased, b/c a buyer would buy not only the depleted stock, but all of the other negative entailments. This unloads the problem for the investor, and likewise grants the adventurous capitalist the prospect of taking on a cheap investment that might turn around and become more that it was initially worth, post-poor corporate behavior."

And it would simultaneously alient many unknowledgable investors, which sadly or happily, make up a sizable portion of shareholders.