If a firm's stock price falls during the year, this indicates that the firm's managers are not acting in shareholders' best interests.

Question

Quizplus · Accepted Answer

The stock price of a firm can be affected by a variety of factors, including market conditions, industry trends, and macroeconomic factors. Therefore, a fall in the stock price does not necessarily indicate that the managers are not acting in shareholders' best interests. It is important to examine other factors such as financial performance and strategic decisions made by the managers before making such a conclusion.

If a Firm's Stock Price Falls During the Year, This