Is divestment an ineffective method of protest?

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Posted by Luke Burns (MONEY FORUMS: 4, Answers: 0)
Asked on May 4, 2016 12:21 am
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Divestment may lead to a financial hit for you, but the company won’t feel a thing. Stock shares are sold between individuals. The company doesn’t lose any money when you divest. If you get a large enough group of people divesting at the same time, your might get some attention, and the executives of the company might feel a little pain if their compensation is linked to stock prices, but that drop in stock price will hurt you/your organization more. A much more effective form of protest is a boycott of the company’s products/services. That DOES hit their bottom line, not yours.

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Posted by Beth Tallman (MONEY FORUMS: 1, Answers: 61)
Answered: May 12, 2016 6:56 pm
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Hi Luke, I find your question extremely interesting, especially in respect to large-scale divestments. In our capitalist society, with such a focus on monetary values, I think that divestment can be an incredibly effective method of protest. The question here, is how do we get a group of people, or all investors to divest in a certain product, business or group? Certainly if the investment is profitable, people are less likely to divest, but that is why transparency is so significant. To answer your question more directly, I think that divestment can be an effective method of protest depending on the scale and if people are willing to see past the monetary benefits.

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Posted by Joshua (MONEY FORUMS: 2, Answers: 4)
Answered: May 5, 2016 5:35 pm