Why Is Knowing Whether Directors Have Been Purchasing Shares of a Corporation

question 59

Multiple Choice

Why is knowing whether directors have been purchasing shares of a corporation a fundamental right belonging to the shareholders of a corporation?

• A) Permits shareholders to maintain the optimum proportionate share of ownership.
• B) It is the simplest and least costly method of earning capital gains.
• C) It is the simplest and least costly method of soliciting proxies.
• D) Permits shareholders to determine use of confidential information for personal profit.

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Definitions:

Marx

Karl Marx, a 19th-century philosopher, economist, and revolutionary, known for his theories about capitalism and communism.

Weber

Refers to Max Weber, a German sociologist, economist, and political scientist known for his theory on the process of rationalization and his analysis of bureaucracy and social stratification.

Social Stratification

The division of society into hierarchical levels based on factors like wealth, power, and status, leading to unequal access to resources and opportunities.

Inequality

The unequal distribution of resources, opportunities, rights, and powers within a society.