Why the stock market is failing Britain

Last year John Kay, a very accomplished economist who is a director of several companies, was asked by the government to see if the stock market is serving the needs of Britain's investors and companies. His interim findings were published last week and they make interesting reading.

Kay argues that today's stock market primarily serves the interests of the fund management industry, rather than those of companies and investors. He goes on to say that a culture of chasing short-term performance targets has developed, which is damaging the British economy and also harms investors' returns.