Not all investors hail from a similar origin. From retail to institutional investors, each category is defined by specific characteristics like investment knowledge and the size of their trades. Today, we explore a rising class reshaping the stock market: wireless investors. Joining us is Christina Sautter, the law professor who coined the term. Based at SMU Dedman School of Law, Christina’s work spans corporate governance, M&A, and tech-driven investing. She’s also a founding director of the Center for Retail Investors and Corporate Inclusion. Christina reveals how wireless investors, who are tech-savvy and community-driven, challenge traditional market dynamics. She addresses concerns about risky behaviors and explains why the media’s portrayal may not tell the full story. Christina also highlights the untapped potential of SEC Rule 14a-17 shareholder e-forums, the critical need for financial literacy – a driving force behind the Center for Retail Investors and Corporate Inclusion – and the role of AI in the future of investing. For a deep dive into the world of wireless investors, be sure to tune in to this fascinating conversation with expert Christina Sautter!
Key Points From This Episode:
- An overview of traditional barriers to investing in the stock market.
- The definition of wireless investors and the diverse demographics that make up this group.
- Critical factors that contribute to social norms around shareholder voting behavior.
- The complexity of disclosures and how they prevent shareholders from being informed.
- How the pandemic and online communities brought wireless investors into the market.
- Key takeaways from Christina’s article ‘Wireless Investors & Apathy Obsolescence’.
- Unpacking the power that wireless investors have to move the direction of a company.
- Media reporting on risky wireless investor behavior and what they tend to get wrong.
- The importance of financial literacy and having an infrastructure that supports fact-checking.
- Top benefits of SEC Rule 14a-17, the shareholder e-forum rule.
- The mission behind the Center for Retail Investors and Corporate Inclusion.
- Christina’s hopes and concerns for how AI will impact investors.
- A sneak peek at what Christina is working on, including an upcoming book called Wireless Investors.
Links Mentioned in Today’s Episode:
Center for Retail Investors and Corporate Inclusion
r/WallStreetBets
‘Wireless Investors & Apathy Obsolescence’
‘Corporate Governance Through Social Media’
‘The Corporate Forum’
Fordham University School of Law Corporate Law Center