Understanding Stocks: Ownership, Valuation, and Management Goals

Chapter 9 delves into the fundamental aspects of common stock, emphasizing that it represents ownership in a company. Stockholders have the power to elect directors, who in turn elect the management team. The primary objective of management is to maximize the stock price to benefit shareholders. Additionally, the chapter covers intrinsic value and stock price estimates, highlighting the various methodologies employed by outside investors, corporate insiders, and analysts to assess a company's worth.

• common stock
• stock valuation
• intrinsic value
• stock price
• shareholder control
• management goals
• corporate insiders
• investment analysistext

kueng + Follow