Profit maximization does not reflect (1) the timing of profits and (2) the
riskiness of different operating plans. However, both of these factors
are reflected in stock price maximization.
of course it is bad research about it
Shareholder wealth (more commonly referred to as shareholder value) is talking about the value of the company generally expressed in the value of the stock. Profit maximization refers to how much dollar profit the company makes.
The society benefit throughconsumer benefitemployee benefit
Another name for stockholder wealth maximization is maximization of the value of the common stock. Stockholders have little power in corporate decision making.
If the company is public listed (trades in the stock market) their aim is shareholder wealth maximization whereas for a privately owned firm a profit maximization objective is appropriate.
Under what conditions might profit maximization not lead to stock price maximization?"
There are various conditions under which profit maximization may not lead to stock price maximization. Some of them include outstanding shares and assets falling below the cost of the debt among others.
Value maximization and profit maximization are very much related, the main difference being- value maximization means increases in owners' wealth achieved by maximizing of the value of a firm's common stock. profit maximization is the process by which a firm determines the price and output level that returns the greatest profit. the other difference among the two could be sited as- value maximization is seen as long term objective of a firm, whereas profit maximization is generally a short term objective.
The ask price is the price a seller is willing to accept for a stock, while the bid price is the price a buyer is willing to pay for the stock. The difference between the two is called the spread.
of course it is bad research about it
The same actions that maximize stock prices also benefit society. Stock price maximization requires efficient, low cost operations that produce high quality goods and services at the lowest possible cost. Stock price maximization requires the development of products and services that consumers want and need, so the profit motive leads to new technology, new products and new jobs. Also, stock price maximization necessitates efficient and courteous service, adequate stocks of merchandise and well located business establishments.
Shrinkage is the difference between the stock on the inventory book and the actual physical stock. Shrinkage is also deifned as the difference between the value ( retail price ) of the stock on the inventory book and the value of the ( retail price ) actual physical stock. Shrinkage % is calculated as the difference between the value ( retail price ) of the stock on the inventory book and the value of the ( retail price ) actual physical stock by the retail sales of this volume
The bid price is the highest price a buyer is willing to pay for a stock, while the ask price is the lowest price a seller is willing to accept. The difference between the bid and ask price is known as the spread.
Shareholder wealth (more commonly referred to as shareholder value) is talking about the value of the company generally expressed in the value of the stock. Profit maximization refers to how much dollar profit the company makes.
The bid price is the highest price a buyer is willing to pay for a stock, while the ask price is the lowest price a seller is willing to accept. The difference between the bid and ask prices is known as the spread, which represents the cost of trading a stock.
The society benefit throughconsumer benefitemployee benefit
The bid price is the highest price a buyer is willing to pay for a stock, while the ask price is the lowest price a seller is willing to accept. The bid price is what you can sell a stock for, and the ask price is what you can buy a stock for.