Since dispersed ownership is such an important source of corporate governanceproblems it is important to inquire what causes dispersion in the first place Thereare at least three reasons why share ownership may be dispersed in reality First, andperhaps most importantly, individual investors' wealth may be small relative to the sizeof some investments Second, even if a shareholder can take a large stake in a firm,he may want to diversify risk by investing less A related third reason is investors'concern for liquidity: a large stake may be harder to sell in the secondary market 30For these reasons it is not realistic or desirable to expect to resolve the collective actionproblem among dispersed shareholders by simply getting rid of dispersion.