Jun. 26, 2023
Stop diluting the value of my investments! My proportional ownership of a publicly traded company is the sum of shares I own divided by shares outstanding. Adding beneficial ownership rights to derivatives artificially increases the denominator in the simple equation above and dilutes my proportional ownership all while violating the rights of the company itself because it didn’t issue more shares. A company alone has the sole right to issue shares. The Citizens United Supreme Court case established precedence that corporations can be afforded similar rights to a sovereign individual. By proposing beneficial ownership rights to derivatives the SEC is proposing violation to constitutional law. If a speculator wants the rights of ownership let them go into the open market and purchase the security. Perhaps that way we will get true price discovery while preventing obvious conflicts of interest. Sent from my iPhone