Financial statement users?

B.   Stock exchanges need financial statements to set a firm's stock price.

Company's share price is determined by the result of supply and demand in stock exchange market 

Stock exchanges need financial statements to set a firm's stock price. 

choose B stock exchange

B stock exchange

B

The users of the financial statements are called stakeholders. The Stake holders are divided into two categories:1. Internal and External

Internal StakeHolders

1.1  Management, Board of directors, Employees, labour unions etc

while external users include

Regular Authorities such as state bank, SECP (Securities Exchange Commission of Pakistan) etc

Tax department, Investors, Creditors such as Suppliers and Bank, Financial institutions etc, customers, 

all these major and sub groups try to reach their objectives by using (analyzing) the financial statements. 

Option (B)

B) appears wrong as stock price is determined by supply and demand of market forces. 

I also mention that employees are stakeholders to evaluate job security and it's good corporate governance to reveal financial performance both financial and non financial, not for salary and fringe benefits negotiations though. 

Stock Exchange need financial statements to give exact information to Investors which tends to determine the value of Stock in the Exchanges.

The appropriate answer is-B.

Users Of Financial Statements are Two Kinds :

Direct Like :

1- Suppliers & Creditors .

2- Shareholders ( Investors )  .

3- Employees & Management.

Indirect Like :

1- Financial Institutes & Advisors .

2-Stock Markets & Regulatory Bodies .