In traditional finance the argument is that stock price is always correct. That is, the stock price truly tells you the value of the firm and hence the quality of the management of the copy. Moreover, the stock price today tells you what the investors think of the firm in the future. It is because of this argument that most top management get paid by stock options that incentivize the management to get the stock price up. How does this focus on the short-term stock price influence some companies to not act in the long-term interests of the shareholders and other stakeholders in the company? Use anything from class to answer this (videos, etc.). Some hints are the prisoners dilemma, present bias, stock buybacks, Enron, Minsky, Credit Default Swaps, Goldman Sachs and Greece, Bond Rating Firms Behavior, Accounting (Auditing) Firms Behavior, John Reed, Increasing Leverage, Smoothing earnings by corporations.