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A comment on Stock and Bond Markets Dethroned: Private Fundraising Is Now Dominant. Parent comment

Re:Stock and Bond Markets Dethroned: Private Fundraising Is ... by empath75 on Monday April 02, 2018 @03:17PM (#16738170)
If everyone is just doing passive investment, there's no real price discovery, it's just valuable companies getting more valuable just because they're already valuable. It also screws with management incentives for the companies when their 'owners' are completely checked out and uninterested in performance.
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Re:Stock and Bond Markets Dethroned: Private Fundraising Is ... by kspaans on Monday April 02, 2018 @03:23PM (#16738254)
Vanguard is hardly a passive owner: https://about.vanguard.com/investment-stewardship/policies-a...
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Re:Stock and Bond Markets Dethroned: Private Fundraising Is ... by fricat1ve on Monday April 02, 2018 @03:50PM (#16738577)
Essentially toothless because an index fund is going to invest the money either way.
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Re:Stock and Bond Markets Dethroned: Private Fundraising Is ... by kspaans on Monday April 02, 2018 @04:57PM (#16739210)
False! SNAP has been explicitly excluded from the S&P500 index for exactly this reason[0]. I'm not sure if "whole market" passive funds would include it or not. At the very least VTI has 0.03% of assets in SNAP[1]. Not much to worry about.

0 - https://uk.reuters.com/article/us-snap-s-p-idUKKBN1AH2RV

1 - https://www.etfchannel.com/symbol/snap/

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Re:Stock and Bond Markets Dethroned: Private Fundraising Is ... by MR4D on Wednesday April 04, 2018 @12:11AM (#16751824)
You’re confusing the maintainer of the index’s ( Standard & Poors) with the implementation (Vanguard).

If S&P puts a company in, Vanguard will buy the shares. Not doing so could cause problems, including lawsuits.

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Re:Stock and Bond Markets Dethroned: Private Fundraising Is ... by kspaans on Thursday April 05, 2018 @05:01PM (#16768750)
Yes, and as I said the S&P500 index excludes companies like Snapchat with the founder-has-most-votes trick. I suppose the real issue here is how much money goes into which indices, and which ones exclude companies like these.
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