INVESTORS ACCOUNTABILITY

Also see: http://stopcontinentaldrift.blogspot.com/2010/06/corporations-are-political-entities.html

Corporations are political institutions. One of the big rules in favor of investors is that the owners (i.e. the stock holders) got a law passed that they are not held accountable for the malfeasance or losses of their company. Think about the value of that.

The above is not true about all types of owners. For example, general partners ARE held accountable although limited partners are not.

Stock holders and limited partners can lose their investment*, but they are not held accountable for malfeasance or losses of their company. Whew, what a relief!

Officers, however, can be held accountable for malfeasance in their companies. Think Enron.

*If you buy on the margin, you can lose more than your investment, of course, but we don't do that, do we.