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By contrast, careful and diversified shareholders will be deterred from being prudent in the future if regulators intervene at the first sign of trouble.
And insofar as firms (by assumption) are owned by perfectly diversified shareholders, who thus possess equal interests in both sides of all commercial transactions, the program can ignore both distributive and corrective justice.
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If a Zynga game is delayed, and Zynga's stock price drops, that decline has a miniscule effect on a diversified shareholder's portfolio returns.
Whereas contracts, intuitively understood, involve coordination among multiple parties, the transactions addressed by the economic theory ultimately involve only the one perfectly diversified shareholder; and they are, therefore, not in the end agreements at all.
Shareholders with diversified portfolios would do better if companies took risks on new products and new technologies, since profits from the successes would more than offset losses from the failures.
The idea behind an EB Exchange Fund is simple: large shareholders from a diversified set of mid to late-stage companies each put 5-105-10%their shares into a pot.
Nicky's first job was in 1968 as personal assistant to the chairman of Anglo American, the largest shareholder in AngloGold, a diversified natural resources group that has a cross-holding structure with De Beers.
Other than having China as a major consumer, BHP and Rio Tinto also share other similarities: a diversified approach to mineral extraction, an overlapping list of shareholders (more than 60% of their shareholders own shares in both companies), and the same dual listing arrangement in Sydney and London.
Diversified companies may seem like basket cases to shareholders.
The companies -- McDermott International, which has $1.8 billion of federal contracts, mostly for Energy Department nuclear work; Tyco International, the scandal-ridden manufacturer; and Ingersoll-Rand, a diversified manufacturer -- will be asked to let shareholders vote next spring on whether the companies should repatriate to the United States.
Baum said: "Longer-term, we continue to strongly endorse the chief executive's dynamic strategy in moving towards a diversified healthcare model, which we believe will create significant shareholder value long-term.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com