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Basic Question 1 of 6

Which one is more likely to offer incentives to motivate managers to "behave like owners"?

A. Private equity
B. Public equity
C. Bond

User Contributed Comments 2

User Comment
johntan1979 B does the same thing too, but I guess in terms of the level, A > B
dbedford I am aware of companies that award what I call private shares to executives, that tend to pay out a good deal and then are redeemed and given back to the company at the end of the year and re awarded for current year performance and the cycle continues.
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Edward Liu

Edward Liu

Learning Outcome Statements

compare and contrast public and private equity securities

CFA® 2024 Level I Curriculum, Volume 3, Module 4.