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Q: Is it true that if the value of a share goes below what a shareholder paid for it the shareholder makes money.?
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What is the difference between shareholder wealth maximisation and stakeholder wealth maximisation?

Shareholder and stakeholder in a company are the investors and company assets holder respectively. So the wealth maximization in both cases is nothing but increase in the share value for shareholder and company profitability for stakeholder.


Different between a shareholder and stakeholder?

Shareholder means a person who is having share in company.Contrary to this stakeholder means a person who is not having share in company but he expects different kinds of benefits from company for example: Account holder,govt agencies and likewise...They are not having share in company but they expect some kinds of benefits from bank.by HACKERSPAKfromhttp://www.ddl92.com


When a firm is maximizing profit what else will it maximize?

When a firm maximizes its profit, it automatically maximizes its shareholder value. When both profit and the shareholder value increase, in course of time, the overall firm value will increase. All these would undoubtely increase its share price in the market as well.


What is maximazation of shareholders wealth and profit?

The maximization of a shareholder's profit is at a point where the value of share is maximum and dividend on the share paid by the company is also very high but only few successful companies give such profit maximization to their shareholders and the listings of such companies can be found out on activetrader-links.com for investment purposes.


What the meaning of stock price?

A share price is the price of a single share of a company's stock. Once the stock is purchased, the owner becomes a shareholder of the company that issued the share. The price is calculated by dividing the market capitalization by the total number of shares outstanding. When viewed over long periods, the share price is directly related to the earnings and dividends of the firm. Over short periods, especially for younger or smaller firms, the relationship between share price and dividends can be quite irrational.

Related questions

If the value of a share goes below what a shareholder paid for it the shareholder makes money.?

false


If the value of a share goes below what a shareholder paid for it the shareholder makes money?

No, if the value of a share goes below what a shareholder paid for it, the shareholder makes a loss. They would only make money if the value of the share increases above what they paid for it, allowing them to sell it at a profit. A decrease in share value results in a loss for the shareholder.


What is a shareholder for a company?

A shareholder is a person who owns share(s) in a company shareholder is sometime referred to as a share owner.


Which company give right share to his shareholder?

which company give rightshare to his shareholder


What is the definition of shareholder?

A shareholder is a person who legally owns a share from a company, through the act of buying it. Someone who owns a share or many shares of stock of a corporation


The primary goal of a publicly owned corporation is to a.maximize dividends per share b.maximize shareholder wealth c.maximize earnings per share after taxes d.minimize shareholder risk e.trade goods?

maximize shareholder wealth


What does a shareholder get when dividend is paid?

A share of a company's profits


Can a company shareholder sell his share of a company without the consent of the other shareholders?

A shareholder owns his or her shares. The shareholder needs no ones permission to sell what they own.


Who can be a shareholder of a company?

Any individual can be a shareholder of another company. A shareholder is any person or other company which owns at least one stock or share of a company.


What are the components of equity?

a) Shareholder's Equity = Share Capital + Retained Earnings - Treasury Shares or b) Shareholder's Equity = Assets - Liabilities


Can a partnership be a shareholder in company?

No a partnership cannot be a share holder in a company


What is the ownership of tesco's?

Shareholder owned hope this helps