Part 6/8:
This revelation led to a discussion about the implications of such ownership structures. While it serves to ensure Zuckerberg's leadership and vision for the company, it also raises corporate governance concerns. Shareholders expressed apprehension that such moves could entrench Zuck’s control while limiting their influence.
When Should Investors Care or Not Care?
As O'Reilly and Lewis discussed when stock splits matter, it became evident that the intrinsic value of a company's ownership is not altered by a split. In most cases, investors should disregard the noise surrounding stock splits unless:
- There are profound changes to the corporate governance structure or voting rights associated with the shares distributed.