Who Owns the U.S. Stock Market?
Andrei Jikh • 3 days ago
What This Video Is About
The video discusses the notion that BlackRock, Vanguard, and State Street control the US stock market, and while this idea is partially incorrect, these institutions do possess significant power and influence.
Major Ideas Discussed
- The big three manage trillions of dollars, but most of this money belongs to everyday investors, giving them significant voting power and control.
- Public companies can issue new shares, creating new money, and the board of directors decides which companies can do so, with BlackRock, Vanguard, and State Street having a say through their voting power.
- The big three can influence company policy and exercise control due to their vested interest in almost every company in the S&P 500, with approximately $23 trillion under management and proxy votes on about 90% of US stocks.
- Proxy votes give the big three considerable weight in decision-making processes, as many investors do not exercise their voting rights.
- The big three's influence extends to board elections and company policy, making them significant players in the US stock market.
What to Watch Next
Investors should monitor the big three's influence on the stock market, their voting power, and the impact of proxy votes on company decision-making processes.