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PFMP · Question #704

Assume you work for a technology company that is publically owned, and the value of its stock is tracked daily by the CFO and is reported to the portfolio manager. Quarterly meetings are held with…

The correct answer is D. Are considered external stakeholders. Stockholders of a publicly traded company are classified as external stakeholders because they are outside the organization's operational structure. They own equity in the company but are not employees, managers, or internal decision-makers. In portfolio stakeholder management…

Question

Assume you work for a technology company that is publically owned, and the value of its stock is tracked daily by the CFO and is reported to the portfolio manager. Quarterly meetings are held with stockholders as the company went public through an Initial public offering (IPO) last year. These stockholders:

Options

  • AHave different communications requirements than other stakeholders
  • BTypically receive information as to the portfolio health before each meeting
  • CWant to attend all Portfolio Review Board meetings
  • DAre considered external stakeholders

How the community answered

(44 responses)
  • A
    2% (1)
  • B
    9% (4)
  • C
    14% (6)
  • D
    75% (33)

Explanation

Stockholders of a publicly traded company are classified as external stakeholders because they are outside the organization's operational structure. They own equity in the company but are not employees, managers, or internal decision-makers. In portfolio stakeholder management, distinguishing internal from external stakeholders is critical because each group has different levels of access, influence, and communication needs. External stakeholders like stockholders receive information through regulated channels (quarterly reports, investor meetings) rather than internal governance mechanisms. Options A, B, and C describe operational practices that may or may not apply, but the fundamental classification of stockholders as external stakeholders is the accurate and universally applicable answer.

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