Elon Musk Owns 48.4% of SpaceX, a New Filing Shows. Here's Why That Matters for Everyone Else Holding the Stock.
Confection maker Hershey could be a warning for SpaceX investors, or highlight precisely why Elon Musk's ownership is a good thing...
Overview
At first blush, there's nothing connecting the businesses of Space Exploration Technology (NASDAQ: SPCX) and Hershey (NYSE: HSY). One makes spacecraft, AI technology, and operates the Starlink satellite telecommunications network. The other makes candy bars. But when you dig into the ownership structure, you start to see the connection. Here's what you can learn about SpaceX from Hershey.
The CEO is likely to have the most influence on a business, but there are limitations. That's because the CEO actually works for the board of directors. And the board of directors is hired by the shareholders. So, if anything really big is going to take place, such as a merger or acquisition, the largest shareholders will have an important say. In the case of consumer staples maker Hershey, the largest shareholder is The Hershey Foundation.
Image source: The White House.
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Originally published at www.fool.com.