[Related to the Apply the Concept on page 198] An opinion columnist in the New York Times asserted that “Snap Inc. is aiming to adopt the most shareholder-unfriendly governance in an initial public...

[Related to the Apply the Concept on page 198] An opinion columnist in the New York Times asserted that “Snap

Inc. is aiming to adopt the most shareholder-unfriendly

governance in an initial public offering, ever.”

a. What did the columnist mean by “governance”?

b. Why would he consider Snap’s governance to be “shareholder-unfriendly”? If Snap’s governance is shareholder

unfriendly, why would investors have bought Snap’s stock

when the company engaged in an IPO in March 2017?

Source: Steven Davidoff Solomon, “Snap’s Plan Is Most Unfriendly

to Outsiders,” New York Times, February 3, 2017.