Sunday, August 10, 2014

At what point will corporations become independent from the people?

I buy one share of stock in Widgets Inc and Skip Johansen buys one share of Happiola Corp.  Widget Inc. invests and buys stock in Happiola Corp.  Then I sell my stock and it's bought by Happiola Corp.  Skip sells his stock and it's bought by Widget Inc.  Who owns the companies now?

It's a very dumbed down version but it can happen right?  My concern is that these companies are now all self serving entities who don't have any other motivation besides profit.  It's a flaw in capitalism.  I kinda get a sense that this is coming.  Granted, I know people still own shares and parts of funds that own the companies.  But I get a little concerned when companies are allowed to purchase stakes in other companies.  It seems that it almost like a grand pyramid scheme.

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