If a bank fails, stockholders do not get their money and neither do the senior executives in banks. The customers do not receive their money either.
Corporations try to protect the interest of stockholders by maximizing profits. The more money they more, the more money they will have for their investors.
people who invest in the Stock Market will aut make money
Risk of being a stockholder: Stockholders can lose their money if the company goes bankrupt. Benefit of being a stockholder: Stockholders share in the company's profits. Power of a stockholder: Stockholders can vote for the members of the board of director
From stockholder's equity which is the money the corporation's stockholders invest.
Stockholders
A business' objective is to make money. They are in business to make money for their stockholders. They sell products and services to maximize their profits.
If a bank fails, stockholders do not get their money and neither do the senior executives in banks. The customers do not receive their money either.
Corporations try to protect the interest of stockholders by maximizing profits. The more money they more, the more money they will have for their investors.
The stockholders, who are the owners of a corporation, are served by the board of directors of that corporation. The owners of the corporation (the stockholders) have installed the board members to run the corporation and they, the stockholders, expect the board to operate the corporation in a way that is profitable. Profits are returned to the stockholders in the form of dividends, and the stockholders profits are a direct function of the number of shares each one holds. The shareholders pay the board members large sums of money (and include generous compensation packages, including stock options) for their efforts. The stockholders have a reasonable expectation that the board members will do their best to run the corporation smoothly and will make money, so a corporation's board of directors is tasked with looking out for the interests of the stockholders, who are the owners of the corporation.
Because of corporate greed. The theory if you can make it cheaper disguise it as healthier etc...and stockholders make more money! Hope that helps.
The main function of a business is to make money for their stockholders. Another function of a business is to sell quality products to customers.
people who invest in the Stock Market will aut make money
Risk of being a stockholder: Stockholders can lose their money if the company goes bankrupt. Benefit of being a stockholder: Stockholders share in the company's profits. Power of a stockholder: Stockholders can vote for the members of the board of director
From stockholder's equity which is the money the corporation's stockholders invest.
From stockholder's equity which is the money the corporation's stockholders invest.
That is called "dividends".