S&P 500 to exclude Snap after voting rights debate
I think this is a perfect free market reaction to companies not having voting stock.Last week the FTSE Russell index announced the same thing.As a minor point, dual/triple class shares are still allowed so FB, GOOG and BRK are still ok.If you really want to own a stock that gives you no profits, no income from dividends, no voice in how its run, and actually no value what so ever other than the greater fool theory then go ahead.I mean, Google could come right now and offer to buy SNAP for 10x what its currently valued at and Evan Spiegel could say no, even though its almost a certainty that the company will never be worth that much.On the other hand if you don't like the fact that a company goes public and declares that its ownership is in for life no matter what, then you'll probably view this as a positive measure.All this means is that ETF funds will have some recourse to hold management accountable.One thing is for sure now ETF investing got a bit less passive.As a side note on SNAP in particular, Even though the first Lockup has just expired, most employee's, are in lock up due to earnings coming out on August 10th and a subsequent lock up at the end of the month.By mid September we should have a clear picture on just how the markets value SNAP.EDITTo give an example of what companies like SNAP are foregoing by not allowing voting rights is access to, of the 7 largest owners of google stock, 2 are the founders, the other 5 are mutual funds/ETF fund firms.