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-   -   What is Shareholders wealth? (https://www.askmehelpdesk.com/showthread.php?t=21349)

  • Feb 21, 2006, 06:27 PM
    sarahjones99
    What is Shareholders wealth?
    Hi, I do not understand what maximizing shareholders wealth is? What is it? How does a corporation do it? What are some ways to maximize shareholders wealth?

    Thanks a lot!:)
  • Mar 2, 2007, 03:34 AM
    Jabberwock
    Shareholders' wealth is basically the wealth shareholders get to accrue from their ownership of shares in a firm. Shareholders's wealth increases by 2 possible means: either by increase in share prices that bring about capital gain or increase in dividend payments. Knowing this fact, a firm can maximize shareholders' wealth through this way. However, an optimal point needs to be struck as a firm needs to balance the risk and return involved.

    Shareholders' wealth is also known as shareholders' value. Hope this is the answer you desired.
  • Oct 19, 2007, 01:03 PM
    Antbowen
    Comment on Jabberwock's post
    The answer was understandable.

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