Originally Posted by murraypaul
And that worked when shareholders held stock for decades, so their interest was in the long term growth of the company.
Nowadays stocks are traded for speculation rather than investment, and all many shareholders are interested in is the greatest short-term result possible before the sell and move to something else. Those priorities are diametrically opposed to the priorities of a long-term owner.
I agree. I have long held the position that short term trading is unhealthy. I would support a per share tax on transactions to discourage this. That's the only regulation I could stomach, though. I say that understanding that such a tax would make it more difficult for startups to attract capital and thus would slow innovation.