CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.1% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

What is ownership dispersion?

Ownership dispersion

It's where no single investor owns enough stock to control a company. With dispersed ownership, an entity has at least several owners/shareholders, and the running of the entity is delegated to the management team and a board of directors.

Where have you heard about ownership dispersion?

Dispersed ownership is often described by commentators as the 'Anglo-Saxon model' of corporate governance because it's chiefly prevalent in the United States and the UK. Elsewhere, concentrated ownership tends to predominate, often with a single family owning and managing the company.

What you need to know about ownership dispersion.

Ownership models can have a big impact on companies' performance, and it's been argued for example that higher ownership dispersion improves market liquidity. On the other hand, a higher level of ownership concentration - with institutional investors such as pension funds playing a leading role - can often provide more effective monitoring of a company. Owners with significant amounts of shares can take aggressive actions over controversial corporate decisions, while small investors may have less incentive and ability to intervene over a firm's strategy.

Related Terms

Latest video

Latest Articles

View all articles

Still looking for a broker you can trust?

Join the 580.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading