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Unformatted text preview: -Rise of professional management class Owners- Principle Management- Agent-Owners- Shareholder Provide money in exchange for share of company Institutional ownership is 60% of stock ownership Companies which make money gives out dividends Stock appreciation of value Social issues when returns even seem competitive Rights Right to sell Right to share in profits Right to annual reports Right to elect and hold board Everyone in corporation works for owners Bonds represent shareholders Senior management -> Management-> Employees Board of Directors- Legal objective to establish corporate objectives Board is set up to protect shareholders interests Principle/Agent problem...
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- Fall '08