Pressure of Overstate Stock Valuation

Given that I am the CFO, there is a need to ensure that I understand the repercussions of selling the firm with the devalued stock since the buyer is likely to suffer significant losses and realize that the stocks were devalued, a loss that would have been avoided in the event that the seller exercised honesty (Julian, Nicholas & Siegwart, 2014). On the other hand, as the CFO, I will give much thought to the well-being of the organization's stakeholders who had been running the firm before arriving at the decisions to sell it to a buyer. In this case, if the stocks are written off as requested, then the magnitude of this loss will be shouldered by the stakeholders. Moreover, I will need to take consideration of the legal issues surrounding the operations of the organization should the stocks be devalued and make my decision in full reliance on the laws.