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Which of the following actions would be most likely to reduce conflicts between stockholders and bondholders?

Which of the following actions would be most likely to reduce conflicts between stockholders and bondholders? A) A government regulation that banned the use of convertible bonds. B) The passage of laws that make it harder for hostile takeovers to succeed. C) Compensating managers with more stock options and less cash income. D) Including restrictive covenants in the company’s bond indenture (which is the contract between the company and its bondholders). E) The firm begins to use only long-term debt, e.g., debt that matures in 30 years or more, rather than debt that matures in less than one year.

Public Comments

1. F) Recovery of US corporate-stolen working class pensions and funds off of Wall Street - plus punitive damages. This will involve a physical invasion of the house of rich class crooks by working class heros. Rich class thieving stockholders and bondholders will be strung up on the lawn, and therefore no longer in conflict over who steals the most working class pensions.