Management and Organizational Studies 1023A/B Lecture 6: MOS- Ch 6

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Maria Ferraro

Document Summary

Mos- introduction to finance: the science or study of the management of funds webster"s collegiate. Maximizing the price of the existing common stock: good financial decisions will help increase stock price and poor financial decisions will lead to a decline in stock price, goal is creating value for the shareholders. Shareholders get rich because they think the company is going to make decisions to make them more wealthy. Hopefully managers do a good job to increase the stock price of the company: sell the shares, dividends. If managers make good decisions, should have a good outcome for the stock price of the company. Should have a positive impact on the stock price: role of management, management serves as an arbitrator and moderator between conflicting interest groups or stakeholders and objectives, principal agent relationship. Shareholders own the company: owns the stock in the company. Stakeholders: any group that has invested interest in the company; managers, workers, company.