This document discusses the various stakeholders in a company and the potential conflicts between them, particularly between shareholders and bondholders, and management and shareholders. It notes that in an ideal scenario, shareholders' interests are maximized, but in reality other stakeholders' interests can be compromised. Regulations aim to reduce social costs and better align management and shareholder interests through measures like stock-based compensation. The document also outlines some opportunities for conflict between management and shareholders over compensation and risk, and ways these agency problems can be reduced through better corporate governance.