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The question is misleading. In fact the goal of financial management is to maximize future share prices. Current share prices are a reflection of past financial decisions.

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What is the goal of financial management?

To Maximize shareholder wealth.


Why is the goal of financial management to maximize the current share price of the copany's stock?

The goal of financial management is to maximize the current share price of the company's stock because it reflects the company's overall value and performance in the eyes of investors. A higher share price indicates greater investor confidence, which can lead to increased capital for expansion and growth. Additionally, maximizing share price aligns the interests of management with those of shareholders, promoting decisions that enhance profitability and long-term sustainability. Ultimately, a strong stock price serves as a key indicator of a company's financial health and market position.


What is the primary objective of financial management?

The primary objective of financial management is to maximize the value of an organization for its shareholders while ensuring financial sustainability. This involves making strategic decisions regarding investment, financing, and dividend policies to optimize the allocation of resources. Additionally, financial management aims to manage risks and enhance the overall financial health of the organization. Ultimately, it seeks to balance profitability with long-term growth and stability.


What is maximizing corporate profits?

Maximizing corporate profits is a kind of idea which is simple, obvious and straightforward. To maximize a profit is to squeeze in as much value of a certain resources as possible.


What are financial objectives of multinational companies?

to maximize profits for their owners.

Related Questions

The objective of Management is to maximize profits?

It is a true statement that the objective, or goal, of management is to maximize profits. Another term for profit would be financial gain.


What is the importance of a consulting customer management relationship?

A consulting management relationship can improve the a companys interaction with its clients and sale prospects. This can extend company life and maximize company profits.


What is the goal of financial management?

To Maximize shareholder wealth.


What is the noun of maximize?

The noun forms of the verb to maximize are maximizer, maximization, and the gerund, maximizing.


Why is the goal of financial management to maximize the current share price of the copany's stock?

The goal of financial management is to maximize the current share price of the company's stock because it reflects the company's overall value and performance in the eyes of investors. A higher share price indicates greater investor confidence, which can lead to increased capital for expansion and growth. Additionally, maximizing share price aligns the interests of management with those of shareholders, promoting decisions that enhance profitability and long-term sustainability. Ultimately, a strong stock price serves as a key indicator of a company's financial health and market position.


What is financial management decisions?

decision that increases the value of their shares, Thus while performing the finance function, the financial managershould strive to maximize .


What is maximizing corporate profits?

Maximizing corporate profits is a kind of idea which is simple, obvious and straightforward. To maximize a profit is to squeeze in as much value of a certain resources as possible.


What is corporate financial management?

Corporate finance is an area of finance dealing with financial decisions business enterprises make and the tools and analysis used to make these decisions. The primary goal of corporate finance is to maximize corporate value while managing the firm's financial risks. Although it is in principle different from managerial finance which studies the financial decisions of all firms, rather than corporations alone, the main concepts in the study of corporate finance are applicable to the financial problems of all kinds of firms.


What is the difference between the perspective of financial management and accounting?

Financial management focuses on the strategic planning, organizing, directing, and controlling of financial activities, aiming to maximize shareholder value and ensure the efficient use of company resources. In contrast, accounting primarily deals with the systematic recording, reporting, and analysis of financial transactions, providing a historical view of a company's financial performance and position. While financial management is forward-looking and concerned with future financial strategies, accounting is retrospective and emphasizes compliance and accurate financial reporting.


What are the primary objectives of financial managers?

The success or failure of a company, is highly dependent on its ability to effectively manage and increase its value ever fiscal year. The implicit financial management goals for managers and directors of a company, is to run in the interest of shareholders and shareholder wealth for long term profitability.


Why is the goal of financial management to maximize the current share price of the company's stock?

doing so quarantees the company will grow in size at the maximum possible rate


What is wealth management, and why is it important?

Wealth management is a comprehensive financial service that helps individuals and families grow, protect, and manage their assets. It involves financial planning, investment management, tax strategies, retirement planning, and estate planning to ensure long-term financial security. Wealth management is important because it provides expert guidance tailored to your financial goals, helping you maximize returns while minimizing risks. If you're looking for professional wealth management services, Evalesco offers expert solutions to help you achieve financial success.