Shame on the shareholders, then, for letting that happen. In the case of Zynga, why did they buy stock? Was it because Zynga was an amazing company with brilliant technology, a solid executive team focusing on long term fundamentals and sustainable business practices? Or did most of them invest because the stock price was going up and the business had buzzwords like "social", and so they jumped in like sheep to try to ride the gravy train?
There's truth in what you say about the system rewarding the lazy. But that's fundamentally because of the stupidity and laziness of the shareholders. There's still opportunity in this turbulent system though to pick winners, and be a shareholder that rewards competence and punishes incompetence.
But that's fundamentally because of the stupidity and laziness of the shareholders.
It's kinda cute that you believe that, and are prepared to go to any length to blame immoral behavior on anyone you can find other than the people engaging in the behavior.
Also, beyond the initial purchase of the stock -- which may be well before any signs of trouble -- shareholders can easily be made to have zero power; even the power to replace directors through shareholder elections can be taken away:
"My shares count more than yours", requiring an ousted director's approval of his own ousting, plurality voting which allows directors to remain even when they can't muster a majority... the list of tricks goes on and on.
I am not normally the type to say this, but: in the case of corporate governance, the system is now actually rigged against shareholders. Much larger changes than just "don't buy stock in a company that will later go bad" are needed.
But that's fundamentally because of the stupidity and laziness of the shareholders
Absolutely, I agree 100%. Our Democracy as a whole suffers from the same problem. That doesn't imply, however, that the problem can't or shouldn't be fixed by someone other than the shareholders. Our society may decide that it would be a better one with some checks and balances in place to keep shareholders from shooting themselves in the foot.
Note that I'm not arguing, one way or the other, that there's a problem or that it should be fixed. I'm simply pointing out that You can start a company too! and even It's the shareholders' fault may be true statements but they don't address whether the problem should be fixed.
There's truth in what you say about the system rewarding the lazy. But that's fundamentally because of the stupidity and laziness of the shareholders. There's still opportunity in this turbulent system though to pick winners, and be a shareholder that rewards competence and punishes incompetence.