Question

Which is the most important stakeholder of the following groups in terms of sentiments in the...

  1. Which is the most important stakeholder of the following groups in terms of sentiments in the market for the company?
    1. Potential new shareholders.
    2. Existing shareholders.
    3. Current creditors.
    4. The CRA.
    5. Existing management
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Answer #1

Market Sentiments impact the existing shareholders in a large way. Creditors and Credit Rating Agency and the existing management are not so concerned by the market sentiment, till the time they are able to fulfil their roles and responsibilities. But a negative market sentiment, might take the stock prices deep out of the money and will impact the existing shareholders. The new shareholders, might take a rationale decision whether to invest or not, it will not impact to him unless he invests in the company and become a existing shareholders.

Correct option B

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