1. Is it unfair or unethical for corporations to create classes of stock with unequal voting rights?
2. Evaluate the following statement: Managers should not focus on the current stock value because doing so will lead to an overemphasis on short-term profits at the expense of long-term profits.
Stock is a term which is used to describe the part of a company which is available in the stock market for investment purposes. Stocks are traded with the help of financial advisors as well as trading brokerage firms.
Answer and Explanation: 1
1. It cannot be considered unethical because corporations can create classes of stock per their choice. If the investor does not like that there are...
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fromChapter 25 / Lesson 16
A diversified investment portfolio typically contains stocks and bonds, which are financial instruments known as securities. Explore the types of stocks and bonds, how they are purchased and sold, and learn about the risk and possible return on investment opportunities.