ABSTRACT
The institutions take a different view, or at least some of the larger ones do. They believe that any volatility that has been detected owes far more to the political and economic uncertainties surrounding the stock market in recent years than to structural changes within the investing public. The institutions do not entirely dismiss the choice they have of selling shares in inefficient companies. Many of them remain unconvinced that it is wrong to allow the stock market to play its customary role in the allocation of resources, and as a spur to management. The ingenuity of the City in providing a financial mechanism of this kind to meet individual needs should hardly be in dispute. The real clash of interests lies elsewhere, mainly in assessing why it is felt that some parts of British industry are not getting the funds they ought to get.
