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Shareholders are actually owners of the company in which they hold stock in. All decisions should be made with the consideration of maximizing shareholders wealth. It is not to just increase the size of the company or to see that executives get rich but rather to maximize the return for shareholders/owners of the corporation.
Maximizing shareholder wealth means that the company reduces re-investment of profits and increases the dividend payouts. Dividend payouts are the benefits paid out to shareholders after a financial period.
1. The only shareholders are individuals, estates, certain exempt organizations, or certain trusts. 2. The company has no nonresident alien shareholders. (That is, the only shareholders are US citizens and resident aliens.)
It is certainly a financing activity to the business or company. Just like debentures taken or any other source of financing. it is in a way money owed by the business to the promoters or shareholders to finance the company's activities. however, to the shareholders or promoters of a business it is an investing activity
You get a fixed preannounced return on your investment. You do not gain from the performance of the company. You may be affected by the inability of the company to honor its commitment to you by way of payment. You have a priority claim over the shareholders in case of a company going bankrupt. Country specific laws apply. Some debentures are converted into equity shares after a specific period Note: Please read the terms and conditions carefully.
recently which industry/company had issued its debentures
recently which industry/company had issued its debentures
Yes
YES!
How A company gets money from shareholders when?
Shareholders wealth can be maximized by maximizing Return on Equity, which is equal to Net Income divided by equity. The higher the net income the more the stock price will increase which will maximize their wealth.
The company is not always the property of the shareholders. The company is in part the property of the shareholders if it is a publicly traded company.