Did you know that when you invest in a company, you get the right to vote at company meetings and influence company policy?
You don’t have to be a big investor with millions to invest to have a say. You just need to have at least $2,000 invested in a company’s stock in order to vote—and your vote can really make a difference.
Investors have used their rights to help companies make many improvements and address important issues. But here’s the problem: proposed legislation puts your rights at risk.
Find out why your vote really matters in FundX President Janet Brown’s latest video, and learn a simple thing you can do to continue to help companies move forward.
When you invest, you get a say in how a company operates. Many investors don’t realize what a big deal this is, but here are three reasons why we think it really matters:
1. It helps companies - Investors have used their voice to help hundreds of companies make significant improvements on major issues such as executive pay and climate change.
2. It’s a level playing field- You don’t have to be a huge shareholder to vote. You just have to own at least $2,000 of a company’s stock. Smaller shareholders can still bring up important issues.
3. It’s worked for decades - The right to vote on shareholder proposals at company meetings dates back to the Securities Exchange Act of 1934.
Here’s something many people don’t know:
When you invest in a company, you get the right to vote and actually influence company policy. Did you know that?
For example, say you think that the company’s CEO is overpaid -- you can vote to change executive compensation. Want a company to use more renewable energy? You can vote for that, too.
Your votes can really help a company move forward. It’s part of a long tradition that’s been going on for more than 70 years.
And it’s something that just about anyone can do. As long as you’ve invested at least $2,000 in a company’s stock, you get a say. You don’t have to be a big investor or have millions to invest. It’s pretty amazing when you think about it.
So what’s the problem? It may not last. Part of the Financial Choice Act, now before the Senate, would require you to own 1% of a company in order to vote. That’s a huge change.
For example, now as a Wells Fargo shareholder, you’d need to own $2,000 in order to vote. But under the Choice Act, you’d have to own more than 2 BILLION dollars of Wells stock. Even the largest mutual funds don’t own that much of a single company.
The Choice Act would mean that individual investors like you and I wouldn’t have a say anymore. So if you’re concerned about losing your right as an investor, tell your senator... and help spread the word to other investors. Thanks for watching.