Posts Tagged ‘stocks’
Corporations have a fiduciary responsibility to their debt and equity holders—collectively called their stakeholders. But when a company decides to issue stock in the public market, they lose significant control over how their shares are valued and traded. This is deemed acceptable, of course, because there are many shareholder advantages when a private company goes public.
With the recent meltdown in the global-financial system, it became apparent that risky-trading behavior is a rampant, real issue in financial markets. Read more »