Paper must include both capital markets and corporate governance. We should support our paper with federal or state laws (NY State) (Stewardship Code, 401k and more) regulations, and several cases for our research paper because this is research paper for law class.
Passive indexing is investing in market indexes through one of two vehicles – an ETF or index fund. In their simplest sense they are both meant to diversify, track an index, and be a low cost alternative to actively managed mutual funds.
Assume that there is an US Stewardship company (such as Blackrock Investment Stewardship) and they’re investing, managing and controlling to 7,000 companies stocks in behalf of their 8000 clients (Stocks of companies are worth 20 billion dollar). Stewardship companies generally have 50-500 employees.
The question is how the Stewardship Company and their clients enjoys and manages their fiduciary duty during managing, controlling and engaging funds, stocks, etc.? Because they have limited employees and they have so many clients, which are investors, and so many stocks to observe and manage in behalf of this clients. Is it enough to enjoy their duties via checking and observing stock market everyday and visiting clients offices and meeting with them in routine or do they need more specific performance? (Legal background, law and cases)
And also some countries require from stockholder to limited engagement like only attending annual meeting etc., whereas some of them like US requires “full time engagement” (Stewardship Code)”. If you have 7,000 companies and only 70 or 700 employees how will you be able to enjoy full time engagements?
Also, US corporations have their annual meeting on weekdays while other countries having annual meetings during weekends. Is it one of the practical consequences of full time engagement requirement? (we should answer this question in a single paragraph or two paragraphs, but no more than a page)
DO NOT FORGET, As a Stewardship Company, you should not be aggressive for executive compensation or other financial gains because all of your clients (investors) should win. You could make an investment in all companies in same sector on behalf of your clients but as a Stewardship company, your purpose is not destroying/killing companies via investing only few of them.
YOUR PURPOSE IS MAKING COMPANIES COMPETE WITH EACH OTHER AND MAKE YOUR CLIENTS RICHER via earning money.
In the paper we can develop this topic from several point of views. Those are points that professor want answer but we should also develop our research paper with other perspective/ issues etc. Also we should definitely use US Stewardship Code (2018) and 401k for legal background.
Paper Requirements 20 pages, doubled-spaced with endnotes 25 pages double-spaced with footnotes
Basic English, Proper grammar, punctuation, citation
No wholesale insertion of rule text in body of paper-
Please use an appendix
Know the difference between primary and secondary sources
Please write with passion, and take a position that you defend with empirical data and be thoughtful
It requires a thesis/argument not a mere overview of rules and regulations.
!! It must include both capital markets and corporate governance. !!!
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