With stock ownership, executives are risking their own human capital.

Question

Quizplus · Accepted Answer

By owning company stock, executives not only have a financial stake in the success of the company, but they are also risking their own reputation and career if the company performs poorly. This is because the performance of the company is often seen as a result of the decisions made by its executives. Therefore, stock ownership aligns the interests of executives with those of shareholders and encourages them to make decisions that benefit the company's long-term success.

With Stock Ownership, Executives Are Risking Their Own Human Capital