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

Question

Quizplus · Accepted Answer

The firm's stock price is influenced by various factors such as market conditions, industry trends, economic factors, and investor sentiments, among others. A decline in the stock price does not necessarily indicate poor management or decision-making by the company's managers. It could be due to external factors beyond their control as well. Other performance measures such as revenue growth, profitability, and return on investment should also be considered to evaluate the effectiveness of the management.

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