What do shareholders do when they are dissatisfied with corporate performance?
A) They fire the management team.
B) They disassociate themselves from the corporate problems.
C) They sell their shares.
D) They ignore corporate problems totally.

Question

Quizplus · Accepted Answer

Shareholders can sell their shares if they are dissatisfied with corporate performance. This puts pressure on the company to improve as it can lead to a decrease in share prices and can make it harder for the company to raise funds in the future. Firing the management team may require a vote of the board of directors, and disassociating oneself from corporate problems or ignoring them does not create any pressure for change.

What Do Shareholders Do When They Are Dissatisfied with Corporate