Economy, asked by rathorshivam297, 2 months ago

What is shareholder wealth maximizing

Answers

Answered by malvey2784
2

Answer:

A wealth of a shareholder maximizes when the net worth of a company maximizes. To be even more meticulous, a shareholder holds share in the company/business and his wealth will improve if the share price in the market increases which in turn is a function of net worth.

Answered by pratyush1493
0

Answer:

The principle of shareholder wealth maximization (SWM) holds that a maximum return to shareholders is and ought to be the objective of all corporate activity. From a financial management perspective, this means maximizing the price of a firm's common stock.

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