In the Coen Brothers' movie The Hudsucker Proxy the board of directors picks someone to run the company who they believe will make poor decisions.If things turn out as they plan,
A)the price of a share of stock in the Hudsucker corporation should decline as the demand for shares falls.
B)the price of a share of stock in the Hudsucker corporation should rise as the demand for shares rises.
C)the price of a share of stock in the Hudsucker corporation should decline as the supply of existing shares falls.
D)the price of a share of stock in the Hudsucker corporation should rise as the supply of existing shares rises.

Question

Quizplus · Accepted Answer

If the board of directors deliberately chooses someone who will make poor decisions, it is likely that the company's performance will suffer. This would lead to a decrease in demand for shares as investors would be less confident about the company's future prospects. As a result, the price of a share of stock in the Hudsucker corporation should decline.

In the Coen Brothers' Movie the Hudsucker Proxy the Board