Debt as a Discplining Mechanism

Assume that you buy into this argument that debt adds discipline to management. Which of the following types of companies will most benefit from debt adding this discipline?

a. Conservatively financed, privately owned businesses b. Conservatively financed, publicly traded companies, with a wide and diverse stock holding c. Conservatively financed, publicly traded companies, with an activist and primarily institutional holding. (By conservatively financed, we mean primarily with equity)

Lessons From The Intelligent Investor

Lessons From The Intelligent Investor

If you're like a lot of people watching the recession unfold, you have likely started to look at your finances under a microscope. Perhaps you have started saving the annual savings rate by people has started to recover a bit.

Get My Free Ebook


Post a comment