Running the firm well and acting in the stockholders' interest makes the firm a less attractive takeover target, to begin with.
Who are Stockholders?
- A shareholder of a corporation is an individual or legal entity that is registered by the corporation as the legal owner of shares of the share capital of a public or private corporation.
- Shareholders may be referred to as members of a corporation.
- As noted above, a shareholder is an entity that owns one or more shares in a company's stock or mutual fund.
- Being a shareholder (or a stockholder as they're also often called) comes with certain rights and responsibilities.
Which of the following mechanisms is used to motivate managers to act in the interests of shareholders?
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