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Managers should not focus on the current stock value because the value fluctuates daily based on market conditions, profits, management, and current economy. Managers should instead focus on the long term growth of the company.
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Should managers focus directly on the actual stock price on the stock's intrinsic value or are both important?
Although managers have to pay attention to stock price as an indicator of the general opinion as to the value of their company, they should focus on managing the company in a sustainable manner and providing the product or service that the company offers efficiently and cost-effectively while complying with applicable laws and regulations.
Do you count stock options when counting shares of stock owned by managers of the company?
they are usually accounted for separately because they are not entirely exerciseable at that current time...this means that they will be able to be purchased at usually a much reduced price at a later time, but have no voting value now because they cannot be exercised until a later specified time.
What are some actions that stockholders can take to ensure that management's and stockholders' interestes are aligned?
Threat of takeover.Managerial compensation: Managerial compensation is constructed not only to retain competent managers, but to align managers' interests with those of stockholders as much as possible.Direct intervention by stock holders: Today, the majority of a company's stock is owned by large institutional investors, such as mutual funds and pensions. These large institutional stockholders have the ability to exert influence on managers and as a result the firms operations.Treat of Firing: If stockholders are unhappy with current management, they can encourage the existing board of directors to change the existing management, or stockholders may even re-elect a new board of directors that will accomplish the task.Threat of takeover: If a stock price deteriorates because of management's inability to run the company effectively, competitors or stockholders may take a controlling interest in the company and bring in their own managers.
Should the managers of a company own sizable amounts of common stock in the company?
I believe thay should have some money invested in the company.
What are some mechanisn that encourage manager to act in the best interests of stockholder?
Four primary mechanisms are used to motivate managers to act in stockholders' best interests:Managerial compensationDirect intervention by stockholdersThreat of firingThreat of takeovers1.Managerial CompensationManagerial compensation should be constructed not only to retain competent managers, but to align managers' interests with those of stockholders as much as possible.This is typically done with an annual salary plus performance bonuses and company shares.Company shares are typically distributed to managers either as: Performance shares, where managers will receive a certain number shares based on the company's performance.Executive stock options, which allow the manager to purchase shares at a future date and price. With the use of stock options, managers are aligned closer to the interest of the stockholders as they themselves will be stockholders.2.Direct Intervention by StockholdersToday, the majority of a company's stock is owned by large institutional investors, such as mutual funds and pensions. As such, these large institutional stockholders have the ability to exert influence on mangers and, as a result, the firm's operations.3.Threat of FiringIf stockholders are unhappy with current management, they can encourage the existing board of directors to change the existing management, or stockholders may even re-elect a new board of directors that will accomplish the task.4.Threat of TakeoversIf a stock price deteriorates because of management's inability to run the company effectively, competitors or stockholders may take a controlling interest in the company and bring in their own managers.
Should managers focus directly on the actual stock price on the stock's intrinsic value or are both important?
Although managers have to pay attention to stock price as an indicator of the general opinion as to the value of their company, they should focus on managing the company in a sustainable manner and providing the product or service that the company offers efficiently and cost-effectively while complying with applicable laws and regulations.
Why do managers split their firms stock?
To raise money.
What are the best shares of stock to buy on the market at current?
The best shares of stock to buy on the market at current is the shares offered in the oil industry. The demand for oil as an energy source has not decreased and in fact the interest in alternative energy has placed new focus on oil deposits. The best shares of stock is oil because of its commercial, business and consumer demand.
If the current assets is 5549900 the closing stock is 723200 and current liabilities is 5001400 what is the acid test ratio and comment on it?
minus stock from current assets and then divide it by curent liabilities ... this is the ratio (current assets-stock)/ current liabilies
What is the current stock price of Philip Morris?
The current stock price? Well that would be $7.
What 5 quality points should you look for in a white fish stock?
stock should smell fishy. stick should be clear. should taste fresh and fishy. shouldnt taste bitter.
Can an LLC issue stock?
Corporations issue stock and are owned via stock. An LLC does not issue stock. Like partnerships, an Limited Liability Company is simply owned by the members and/or the managers of the company.
Where do I get information about the current stock market?
MSN Money has all of the current stock information that you are requesting. Another option would be to turn the tv to MSNBC as they are always running the current stock prices.
What should do in current stock market?
In the current stock market, you should choose the stocks you buy very wisely.
Where can one find information of current prices for GS stock?
Information about the current prices of Goldman Sachs Group stock can be found on the market watch website. Here you will find the current trading price and also graphs of current trends in the stock.
Is the current stock market sentiment positive or negative?
The current stock marketsentiment is variable. It can be positive and/or negative, depending on current trends. It is a good idea to check up on the stock market multiple times a day to see.
What is the current stock rate for CPF?
It is difficult for one to provide the current stock rate for CPF, as there are numerous companies on the stock market with the acronym CPF. If one is referring to "Central Pacific Financial" the current rates are at 14.96
