Some people argue that shareholders can diversify their stockholdings and that there is no need for corporate
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Some people argue that shareholders can diversify their stockholdings and that there is no need for corporate diversification to reduce risk. The upshot is that any excess earnings (known as free cash flows) should be returned to shareholders as dividends. Do you agree or disagree with this statement? Why?
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Disagreement with the Statement I disagree with the statement that shareholders can sufficiently diversify their stockholdings on their own and that corporate diversification is unnecessary to reduce ...View the full answer
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