The options that describe the reasons why maximization of intrinsic stock value benefits society are; C. Successful companies benefit consumers.
D. Most investors appreciate the risk companies take to maximize their stocks.
Why does the maximization of intrinsic stock value benefit society?
The intrinsic stock value is the value of the stock determined by factors within a company. This value does not take into account the market factors. There are several benefits of maximizing the intrinsic stock value in society.
Some of these benefits include the fact that successful companies are generally attractive to people. So consumers would benefit from them. Also, investors would be attracted to companies with good levels of intrinsic stock value.
Complete Question:
Which of the following describes the reason(s) why maximization of intrinsic stock value benefits society?
Check all that apply.
Most people have an important stake in the stock market.
People like to work for companies that minimize operating costs.
Successful companies benefit consumers.
Most investors appreciate the risk companies take to maximize their stocks.