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What Does the Board of Directors Do?

101 Things You Always Wanted to Know About Investing in the Stock Market


Board of Directors

The Board of Directors is a group of people elected by the stockholders (the owners) to represent their interest. The board is responsible for hiring the CEO, setting compensation policies, determining dividends, and evaluating performance.

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For a full, detailed explanation of the Board of Directors, why it matters to you as an investor, what directors are responsible for in their capacity representing you as a stockholder, and much more, read Board of Directors - The Responsibility, Role, and Structure.

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