Does the design of stock motivate behavior of corporation

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A lottery ticket, small price with a chance of a large payoff. Stock, limited liability of the shareholder with the chance of a large payoff. Is stock similar to a lottery ticket, limited risk and losses for shareholders for them taking a chance at a large payoff? Does the design of stock motivate a behavior of a corporation to take on high risk for large rewards?

Reference no: EM131973259

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