Sure. There is good and bad with institutional and index fund investors, but not having them on the registry does make it hard for the sharks to rip off retail investors playing dirty games. You just have to look at what has happened to some of the speculative stocks that ended up in the ASX200 over the last few years to see this in action.
I don't think speculative stocks (i.e. non-income producing) should be in the major indexes. It just provides too many opportunities for games to be played at the expense of small investors.
ASH2023 - Sheba 2.0, page-32
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