How is the characteristic of separation of legal ownership and management control disadvantageous to publicly traded companies?

Which of the following is one of the implications of information asymmetry between principals and agents?

- The information comes to all stakeholders simultaneously, which is disadvantageous to the stockholders.
- Principals tend to be better informed than the agents, and thus will avoid delegating decision-making authority to their agents.
- Outsiders, such as shareholders, are the first to learn about important developments, before the information is released to the employees.
- Agents can pass on the information to select principals who can trade stocks based on this information.

What are the four characteristics of a public stock company that make it an attractive corporate form quizlet?

The public stock company enjoys four characteristics that make it an attractive corporate form:.
Limited liability for investors..
Transferability of investor ownership..
Legal personality..
Separation of legal ownership and management control..

Which of the following characteristics of a public stock company deals with principals and agents quizlet?

Which of the following characteristics of a public stock company deals with principals and agents? public companies have defined value creation too narrowly in terms of financial performance, thereby contributing to black swan events.

Which of the following is the source of the principal agent problem in publicly traded companies?

Which of the following is the source of the principal-agent problem in publicly traded companies? the goals of the principals and agents are not aligned with each other.

Which of the following real world scenarios best exemplifies information asymmetry in a public stock company quizlet?

4) Which of the following real-world scenarios best exemplifies information asymmetry in a public stock company? Based on a tip-off by a Goldman Sachs employee, the Galleon Group was able to sell its holdings in Goldman Sachs' stocks prior to the announcement.