Why is the share price of a company an indication of the performance of that company's senior managers?
A) Well-run companies are invariably highly profitable, which leads to a higher share price.
B) Investors who can see that a company is well-run will hold on to their shares, even if the company faces temporary setbacks, since they know that the share price will likely rise again.
C) Larger companies tend to be better run and so have higher share prices.
D) In general, people want to invest in a well-managed corporation, which will drive up the price of its shares.
Correct Answer:
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