When company ownership is spread out,

		the large number of shareholders ensures strong monitoring of managerial behavior because with a large enough group, there's almost always someone who will to incur the costs of monitoring management.
		a "free rider" problem discourages shareholder activism and few shareholders have a strong enough incentive to incur the costs of monitoring management.
		most shareholders will have a strong enough incentive to incur the costs of monitoring management.
		a "free rider" problem encourages shareholder activism.