oil

Broad ownership of public corporations, economic researchers find, yields substantial economic and social benefits. One critical benefit is stronger economic growth. Investors seek out the highest returns available, adjusted for their levels of risk. Thus, the pressures from investors buying and selling shares based on the performance of companies force those companies to invest in the factors that help secure strong returns, including new plant and equipment, trained and knowledgeable personnel, and research and development. Broad ownership of firms also supports economic efficiency. The economy’s overall efficiency depends, in important part, on easy access to capital by firms which can use it productively, and broad ownership of firms can provide much of that capital. Finally,...