Interactive Brokers Group has been served with a class action suit concerning hidden proprietary trading losses! In addition, IBKR's recent Edgar filings reveal that securities fraud was committed in its IPO, when it was concealed that 90% of net income is paid to a "Minority Interest."
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Wrong. 10% of common shares were sold in the IPO, and "float" in the secondary market, and 90% were not. But, that 90% still exists (IBKR is no longer a partnership), and Net Income over a period is defined as the amount that would be given to the common shareholders if all remaining income after expenses was distributed to them, which is why dividends to common shareholders are not an operating or capital expense -- they come out of net income. The minor interest does not represent the remaining 90% of common shares. The minor interest gets 90% of what would otherwise be net income to the common shareholders. Leaving them with 10%. Which is of course a ridiculous deal. Common shareholders pay the cost of capital, and then get 10% of the proceeds.