Wednesday, February 10, 2010

Collective action by Brokers

Today I was going through the book “maharaja of business” which was about the success stories of the various businessmen. In that I read about one incident in 1982 in which collective action of group of various small brokers (FRIENDS OF RELIANCE) under the leadership of Mr. Dhirubhai Ambani, were succeeded in defeating the mal intentions of one Marwari trader to artificially create the decline in stock prices. Can‘t it be called collective action???

Is it necessary that collective action is only for marginalized section of society?

Note: The decline of Reliance Stock prices would have affected millions of small retail investors.

2 comments:

Ankit Gupta(30063) said...

no, there is no written rule saying that a collective action will always be amongst the marginalised. this can also be termed as collective action

Raghav said...

collective action can be anywhere and not only for the poor or the downtrodden, collective action of rich and the wealthy is evident in what opec is and as you described the brokers working together in stock market do. One of the main reasons for the fantastic growth of these people have been through collective action wherby they created a win win situation for themselves.