Which of the following individuals benefit from firms pursuing stock price maximization?

Question

Quizplus · Accepted Answer

Maximizing a firm's stock price can lead to various positive outcomes for different stakeholders. For employees, it often means a more stable and prosperous company, potentially leading to better compensation and job security. Consumers can benefit from the innovation and efficiency that firms may pursue in the effort to enhance their stock value, leading to better products and services. Society at large can benefit from the economic growth and increased employment opportunities that successful companies contribute to, as well as from the philanthropic activities that more profitable companies are able to pursue. Thus, all of the listed groups can benefit when firms focus on maximizing their stock price.

Which of the Following Individuals Benefit from Firms Pursuing Stock