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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.
Why should managers not focus on the current stock value as doing so will lead to over emphasis on short term profits at the expense of long term profits?
Managers should avoid focusing solely on current stock value because it can drive decisions that prioritize short-term gains over sustainable growth. This short-sighted approach may lead to cost-cutting measures, underinvestment in innovation, and neglect of employee development, ultimately harming the company's long-term viability. Instead, a focus on long-term value creation fosters strategic thinking and resilience, resulting in more stable and enduring profits. Balancing immediate financial performance with a vision for future growth is essential for sustainable success.
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.
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.
Why should managers not focus on the current stock value as doing so will lead to over emphasis on short term profits at the expense of long term profits?
Managers should avoid focusing solely on current stock value because it can drive decisions that prioritize short-term gains over sustainable growth. This short-sighted approach may lead to cost-cutting measures, underinvestment in innovation, and neglect of employee development, ultimately harming the company's long-term viability. Instead, a focus on long-term value creation fosters strategic thinking and resilience, resulting in more stable and enduring profits. Balancing immediate financial performance with a vision for future growth is essential for sustainable success.
Why should financial managers strive to maximize the current value per share of the existing stock?
Financial managers should strive to maximize the current value per share of the existing stock because it directly reflects the company's performance and profitability, aligning with shareholder interests. Increasing share value enhances investor confidence and can lead to greater access to capital, as well as improved market perception. Ultimately, a higher stock price benefits shareholders through capital gains and potential dividends, fostering long-term company growth and stability.
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 is the current availability of wine stock at your store?
The current availability of wine stock at our store is limited.
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.
How does wealth maximisation goal takes care of conflict between managers and shareholders?
The wealth maximization goal aligns the interests of managers and shareholders by focusing on increasing the company's long-term value, which benefits both parties. When managers prioritize strategies that enhance shareholder wealth, they inherently work towards improved company performance, leading to higher stock prices and potential dividends. Additionally, performance-based incentives for managers, such as stock options, can further align their goals with those of shareholders, reducing conflicts and fostering a cooperative relationship. Overall, this alignment encourages a focus on sustainable growth and profitability, which satisfies the interests of both groups.
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.
