Shareholder Democracy? For the pampered Few!

Markets are frothy, nothing new with that. And that the Bank of England just got the green light to pump another £ 750 billion (!!) of confetti money into the banking system will not help to cool things down. This money will surely reach the pockets of the 1% - an ill-thought out scheme, like the pathetic help (the building companies sell shoddy and overpriced houses) to buy scheme.
But the new issue for Eggfree Cake Box caught my eye. A valuation of more than £ 40 million, and the founders pocket £17 million - and probably pay way less than the 40% working stiffs have to give up on the proceeds of hard work. All thanks to people who play with other people's money - look up the list of institutional shareholders. Only caveat: the last financial statement I could find (March 2017) shows revenues of £8.6 million. And this is not a tech unicorn! One also has to wonder how many people really want to eat cakes without eggs.
The lesson: the way capitalism incentivises 'wealth creation' it might well work for the lucky few but it only aggravates the tensions that are constantly building and one day may tear it apart.
(22-June-2018)
Cake Box Holdings admitted to AIM

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