Investing for Beginners .EU, investing

investingforbeginners.eu Bite off more than you can chew, then chew it.
Ella Williams

Investment Dictionary


Browse by search:

Browse by Letter: A B C D E F G H I J K L M N O P Q R S T U V W X Y Z All

Stockholder Wealth Maximization

 

Stockholder wealth maximization is a main goal for firm’s managers in corporate finance. Stockholder wealth maximization is above the profit maximization because of long term orientation and better risk management. 

 

To maximize investors value many things has to be done. Wealth maximization includes sales maximization, EBITDA maximization, net profit maximization, sustainability assurance, growth possibilities, optimal risk management, optimal capital structure and other.

 

Stockholder wealth maximization is measured by stock price on the exchange. Of course, the stock price also depends on investment market moods and cycles, but it’s not hard to compare company’s stock price performance to the main competitors’ of the same industry stocks price benchmark. 

 






Last searches: free cash flow , free cash flow , philosophy , coverage ratio , hedge , non-cash roe , investments , BRIC , especially , a funds , investing , investment , beginners , stocks