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A Public limited company cannot survive without shareholders!

The amount invested is HUGE!! More than they could possibly invest by their own means.

If a lot of people invest in a company, it does improve the reputation and goodwill of the firm. Quite obviously... people wouldn't invest if they didn't think they'd get good returns!

However, too many shares being sold could lead to over capitalisation of the firm.

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โˆ™ 2008-11-22 23:44:28
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Q: Importance of shareholders to a company?
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What are the importance of maximization of shareholders wealth?

When businesses maximize shareholders' wealth they are focusing on building the company. This is great for the long term goals of the organization.

Company is the property of shareholders?

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