IJSSER

Title: Striking A Balance: Horizontal Shareholding Versus Consumer Welfare
Authors: Vedant Kardekar
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Vedant Kardekar William G. Enloe GT/IB Magnet Center for the Humanities, Sciences, and the Arts
MLA 8 Kardekar, Vedant. "Striking A Balance: Horizontal Shareholding Versus Consumer Welfare." Int. j. of Social Science and Economic Research, vol. 9, no. 6, June 2024, pp. 1928-1936, doi.org/10.46609/IJSSER.2024.v09i06.021. Accessed June 2024. APA 6 Kardekar, V. (2024, June). Striking A Balance: Horizontal Shareholding Versus Consumer Welfare. Int. j. of Social Science and Economic Research, 9(6), 1928-1936. Retrieved from https://doi.org/10.46609/IJSSER.2024.v09i06.021 Chicago Kardekar, Vedant. "Striking A Balance: Horizontal Shareholding Versus Consumer Welfare." Int. j. of Social Science and Economic Research 9, no. 6 (June 2024), 1928-1936. Accessed June, 2024. https://doi.org/10.46609/IJSSER.2024.v09i06.021.
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ABSTRACT: Corporate ownership plays a substantial role in the U.S. economy. Through a variety of practices, it fosters economic growth and innovation. However, not all of these practices are truly beneficial for the U.S. economy and, in fact, actually result in negative consequences. Horizontal shareholding, also known as common ownership, is one of them. This paper will provide empirical evidence of its detriments and serve as a call to action for U.S. lawmakers to address these adversities through specific avenues. Furthermore, economic context will be provided to understand the meaning of said adversities in the U.S. economy and why they must be overcome. Horizontal shareholding has also been proven to be a consequence of diversification. So, it is reasonable to believe that hindering common ownership would harm the investment security that is created from this practice. This creates a dilemma of whether horizontal shareholding should actually be inhibited. This paper will discuss solutions for lawmakers to sustain the pros of both sides while confronting the cons. These solutions will serve as the impetus for a more fair and just economy that protects both consumers as well as producers, thereby creating a better society as a whole.

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