The Dark Side of Capital Pooling

28 April 2007 at 10:51 am 1 comment

| Peter Klein |

The great advantage of joint-stock companies, whether public or private, is the ability to create value by pooling capital. Unfortunately, capital pools can also be channeled to activities that destroy value. (HT: Against Monopoly.)

Entry filed under: - Klein -, Classical Liberalism, Theory of the Firm. Tags: .

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1 Comment Add your own

  • 1. Donald A. Coffin  |  1 May 2007 at 2:21 pm

    It’ll be interesting to see how yesterday’s Supreme Court (9-0) decision affects things like this. Off the top, thus sort of suit looks to have a lot less possibility than it did just a couple of days ago.

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