What is meant by the goal of maximization of shareholder wealth?

Answer 1

the objective of the management of the company is to show bottom line growth year after year, increase earning per share on a constant basis. reduce the risk profile of the funding. use reserves or ploughed back profits carefully either by reinvesting in the same business, new businesses or even rewarding share holders from time to time [dividends, rights, bonuses]. In essence the value of the stock as represented by the market value should be maximised. Book value of the shares also increase when more profits are retained in the business which also means i expect my businesses under a banner to make higher return compared to other investment alternatives. It is also essential to protect shareholder wealth, the deployment of funds of the company have to productive and assets making lower returns should be improved upon. - I can go on.

Answer 2

The ultimate objective of any company should be maximization of shareholder wealth..shareholders are everyone including stakeholders, equity partners, public, fiis. etc. It is increase the value of the organisation and yield higher returns through capital gains and divdends.
a single denominator would be the EPS(earnings per share) higher the eps gets over the years its increasing shareholder wealth.

Answer 3

Maximising share holders wealth or increasing stock holders value is the fundamental dictum of every Finance Manager. This means increasing the profitability most efficiently utilising the resources as well as maintaining his status quo. The latter is achieved by initiating the right processes which does so.

Answer 4

The CEO should always have the shareholder in mind, not his or her own agenda.

Answer 5

get maximum benifit