Why is the share price of a company an indication of the performance of that company's senior managers?
A) Larger companies tend to be better run and so have higher share prices.
B) Investors who can see that a company is well-run will hold onto their shares, even if the company faces temporary setbacks, since they know that the share price will likely rise again.
C) Well-run companies are invariably highly profitable, which leads to a higher share price.
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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