Purchase Solution

Investors have more at risk than corporate management

Not what you're looking for?

Ask Custom Question

Investors have more at risk than corporate management. Do you agree or disagree?

Purchase this Solution
Solution Summary

A 220 word solution lists six reasons why this OTA disagrees with the statement made.

Solution Preview

Disagree for the following reasons:

1. Investors may own only a small percentage of the stock in a company and would therefore be diversified with other investments.

2. If we talk about investors in the one company, there could still be a spreading of risk between other owners.

3. If the company is small enough so that the ...

Purchase this Solution
Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Motivation

This tests some key elements of major motivation theories.

Introduction to Finance

This quiz test introductory finance topics.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

View More Free Quizzes
Related BrainMass Solutions

  • True or False: Widely Held Stock, Institutional Investors

    The institutional investors have both expertise and resources to monitor the management of the firm.

  • Interest Rate of Treasuries Compared to Corporate Bonds

    When the same feature is added to the corporate bonds, which would have a comparatively higher yield than Treasuries, it is obvious that any investor would prefer investing in corporate bonds for better risk-return trade-off.

  • The Globalization of Financial Markets

    More information the firm provides stronger commitment it has to provide continuing information and less costly it is for investors to monitor the management.

  • Investment and Portfolio Management: The Woodside Petroleum Ltd.

    They may be willing to pay more than $1000 to earn better interest rate, allowing existing investors of the bond to sell it at premium.

  • Corporate Bonds vs Preferred Stocks

    The longer its maturity, the more its price changes in response to a given change in interest rate. Potential default is another risk faced by bondholders. If the issuer defaults, investors will receive less than the promised return.

  • Strategic Management for Corporate Growth

    Lenders may be more willing to lend to growing company than to a company that has been stagnant in performance. Investors may also be attracted to invest in a growing company. 3. Corporate growth may be a promotion itself.

  • Risk aversion by executives

    Corporate executives are more risk averse than entrepreneurs because executives work more with internal risks than external risks. They work with risks within the business environment.

  • This post addresses tax yields and related issues.

    Do investors in high tax brackets or those in low tax brackets benefit more from tax-exempt securities? 2. Do municipal bonds or corporate bonds offer a higher before-tax yield at a given point in time? Which has the higher after-tax yield? 3.

  • corporate finance and capitalism

    capital doesnt just sit around. if that were the case, it would imply that investors saw no more benefit of investing in the mission of the firm relative to risk free treasuries. indeed, capital is invested on the expectation of earning a premium return

View More Related Solutions