Listening Log

Listening Log
Business Finance
Professor : Woochan, Kim
Class : T/TH 14:00-17:00 UTC in UT

When I attend the class yesterday, I learn that how to reduce our risk in investment and to make more benefit in economic activities. Professor said that if investors hold a diversified portfolio, diversifiable risk should not matter. That is, diversifiable risk need not be compensated by a positive return. So then, can shareholders expropriate other stakeholders?
The answer is Yes. But, how? Pay less wage, delay payment to suppliers, default on debt, pollute environment, charge monopoly price to consumers, evade tax and so on. How can this expropriation be prevented? Long-term shareholders have incentive to protect other stakeholders.Government also protects them by law. And also we have to invest diversity because of risk.



Actually I"m not UT student, but I really wanted to attend this class because my second major is Economic. So I visited the Professor"s office and asked him politely to permit the class to me.
So now I can access the blackboard on UT online website like UT students, and also I can check out my homework and documents. I"m really happy to attend the finance class with UT students. I will do my best and I hope to learn lots of things from the class.