CHAPTER 8 Stocks and Their Valuation Features of common stock Determining common stock values Efficient markets Preferred stock Facts about common stock Represents ownership Ownership implies control Stockholders elect directors Directors elect management Management’s goal: Maximize the stock price | CHAPTER 8 Stocks and Their Valuation Features of common stock Determining common stock values Efficient markets Preferred stock 8-1 Facts about common stock Represents ownership Ownership implies control Stockholders elect directors Directors elect management Management s goal Maximize the stock price 8-2 Social Ethical Question Should management be equally concerned about employees customers suppliers and the public or just the stockholders In an enterprise economy management should work for stockholders subject to constraints environmental fair hiring etc. and competition. .
