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Author Question: Why is the stock price of a company an indication of the performance of that company's senior managers? (Read 144 times)

notis

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on: Jul 9, 2019
Why is the stock price of a company an indication of the performance of that company's senior managers?
◦ Investors who can see that a company is well-run will hold on to their shares, even if the company faces temporary set-backs, since they know that the stock price will likely rise again.
◦ In general, people want to invest in a well-managed corporation, which will drive up the price of shares.
◦ Larger companies tend to be better run and so have higher stock prices.
◦ Well-run companies are invariably highly profitable, which leads to a higher share price.
Fundamentals of Corporate Finance ¦ Berk, DeMarzo, Harford ¦ 2nd Edition
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Marked as best answer by notis on Jul 9, 2019

micaelaswann

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Reply #1 on: Jul 9, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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notis

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Reply 2 on: Jul 9, 2019
Great answer, keep it coming :)

cici

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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