Mutual funds are often seen as a safer, more predictable method of investing in the capital markets. Warren Buffet, the legendary investor and one of the world’s richest men, consistently espouses the benefits of investing in “an S&P 500 low-cost … Continue reading
Category Archives: Funds + Securities
Risk of Pledged Securities for Public Companies
Pledged securities – shares of a public company that are pledged by their owner as collateral – present a potentially serious risk to a company’s governance and share price. When a major owner of a company pledges their shares, it exposes the company … Continue reading
The Problem With Pledging, Part II
We recently wrote about the perils of directors and officers pledging shares in their own company. We highlighted some examples and discussed possible ramifications. In this post, we will take a deeper dive into some of the data we’ve compiled with respect … Continue reading
The Problem with Pledging
Last fall, at its annual meeting, FedEx (NYSE: FDX) shareholders and the Board of Directors debated the issue of pledging. FedEx policy prohibits share pledging, but allows the company’s general counsel to grant exceptions on a case-by-case basis. A sole but … Continue reading
Shareholder Activism: Using Analysis of 13D Events as Investment Strategy
A year ago, Audit Analytics analyzed shareholder activism as reported by Schedule 13D filings. Form SC 13D is filed with the Securities and Exchange Commission within 10 days whenever a person or group has attained a greater than 5% position … Continue reading