Shareholders Confidence Is a Crucial Factor for Any Company

1270 Words Oct 19th, 2010 6 Pages
Shareholders confidence is a crucial factor for any company. Since shareholders invest most of their savings in the stocks, they tend to get worried if the markets are not working according to their calculations.

In order to maintain investor confidence, you need to explain certain things about stock market dynamics to them.

Facts about Stock Market Volatility:

1) Most stock markets swing from high to low. Most of these movements are predictable.

2) When the stock markets become volatile across many sectors, it is called a "correction." A correction need not mean losses, in fact, a good investment manager can ride these correction crests to emerge a winner in the market.

3) The buyers want to make profits during volatility
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Earlier this month, two trade union funds - AFL-CIO and the American Federation of State, County and Municipal Employees - sent a letter to Dell shareholders encouraging them to issue a withhold vote.
The letter read: “Based on the allegations in the SEC 's complaint against our company and Michael Dell, we believe that shareholders would be better served by the removal of Michael Dell as the chairman of our company 's board of directors. By voting to ‘withhold’ from Michael Dell, you can encourage the board of directors to appoint a new chairman.”
The revelations of the vote have only added to the turbulence Dell has been experiencing in 2010.
Last month, the computer manufacturer came to a settlement with the US Securities and Exchange Commission after Mr Dell and his firm were alleged to have failed to adequately disclose information to shareholders over payments related to Dell’s commercial relationship with Intel.
Dell was told to pay $100 million as part of the settlement, while the company founder personally paid out $4 million.
Neither Dell nor the chairman admitted or denied the allegations.
At the time, Sam Nunn, presiding director of the Dell Board, said: “Dell’s Board reaffirms its unanimous support for Michael Dell’s continued leadership.”
有戴尔公司的股东季度发出了重新公司的创始人选举 '扣 '投票。
By Tom Brewster, 18 Aug 2010 at 11:50由汤姆布鲁斯特,
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