What is the value of the shareholder?
The value of shareholders refers to the value of a publicly traded company, minus its debts. The value of the company is often calculated as a net present value of all future cashflows and the value of all non -correcting assets owned companies. Non -operating assets may include things such as excess real estate, stocks and excessive pension plans. The value of the company's shareholder can also be considered anything that remains on society if all creditors are fully repaid. Things, such as dividends, increase the value of shareholders, while issuing other shares of shares dilute. In addition to the mathematical definition, the value of shareholders can also refer to other ideas. Sometimes it is used to refer to the concept that the main objective of the public compane is to provide financial value to its shareholders who are its literal owners. More specifically, this may also mean that the shareholder's money - what they used to buy a stock should provide him with a higher return than could achieve as an individual,invest in other assets of a similar risk.
One less common definition of the value of shareholders is the current price of all shares of shares multiplied by the number of shares. However, this value is most often referred to as the market capitalization of the company. This definition leads to one important aspect of philosophy for the concept of the shareholder- the fact that it can sometimes emphasize profitability before responsibility. In other words, there is a strong pressure to increase the price of the company's shares when the organizations are considered primarily to be the tools of their owners.
, of course, it must be profitable in the market economy. In fact, high stock prices are not only the result, but also a source of corporate wealth and competitiveness. One of the main critics, however, coped with the philosophy of the shareholders' values that they do not have to take into account that businesses are not only economic machines but organizations of people. These organizations operateIn a society where there are very important things such as employment practices and ethical behavior. Unethical activities that may temporarily increase the value of the company shareholder may eventually be harmful to the Company, if it is responsible for such steps.