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1.
Which of the following signs may indicate that company directors are motivated to look out for the firms long-term interests?
They own many shares of the company. If a director has a significant stake (in terms of his or her personal wealth) in the shares of the firm, we think this is the best sign that he or she will look out for the long-term interests of the firm.
2.
You can get information on the backgrounds and qualifications of the managers of companies you are interested in from the Securities and Exchange Commission.
True. Companies include information on their managers in their shareholder statements, which are filed with the SEC.
3.
To learn about a prospective company, stock analysts might interview _______.
All of the above. An analyst might interview all of them, and others as well, such as suppliers.
4.
Whom does the board of directors of a company represent?
The shareholders. The board is elected by the shareholders and technically represents them.
5.
Investors should look for companies that _______.
Have set clear goals for measuring progress. Good measurement is good management.
