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!:)

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.

The answer was understandable.