When the ownership of a corporation is widely held,no one shareholder has the incentive to bear the cost of monitoring the firm's managers.

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When ownership of a corporation is widely held, no single shareholder owns enough shares to have a significant impact on the decision-making process. As a result, no single shareholder has the incentive to monitor the firm's managers, as the cost of doing so would outweigh the benefits of doing so. This is known as the free-rider problem.

When the Ownership of a Corporation Is Widely Held,no One