What is the wealth of shareholders?
The shareholder of wealth is a collective wealth that he granted to the shareholders through his investment in the company. Members of the Board of Directors have entrusted obligations to shareholders and responsibility for the protection of their investment reasonably and in accordance with generally accepted practices. If you do not do so, it may result in a sanction, including the votes of shareholders to remove members of the board, in some cases for fines and fines and prison.
Every shareholder has a small part of the company. The issue of more shares will dilute the wealth of shareholders and at the same time the provision of dividends will increase its current shareholders. The value of the company waxes and over time causes the corresponding increase and decreases into the wealth of shareholders. Investors who buy shares can take a long position with the aim of profits on the future date, or they may intend to earn a different party on their wealth by selling a different party and making money for a transaction.R wealth by looking at the total value of society in termsshare and number of shares issued. Sometimes members of the Board of Directors must take strategic decisions that temporarily reduce the wealth of shareholders, such as investing in new equipment or technologies. These investments will increase the value later and are acceptable to shareholders because they show the desire to expand the company. Poor business decisions can lead to losses without the expected future profit and may be a reason for concern.
The fresh duty enshrined in the law may also be an important part of the members of the Council of Philosophy who use for business. They do not focus on enhancing society for themselves, but to the growth of the company in favor of shareholders by increasing their wealth. They must decide on behalf of a group of people who are not involved in everyday traffic and have a very strong system about the future of society. Sometimes it requires balancing contradictory needs such as wanting to pay dividends, but soé want to reinvest to help companies grow and increase the value of sharing.
In maximizing the wealth of shareholders' wealth, the business strategy focuses on building wealth for shareholders as the first priority, although this leads to a decision that does not always have to benefit from the company itself. Members of the Board of Directors must be careful because they do not want to undermine the company and set it for future collapse, but also want to maintain the satisfaction of shareholders. Sometimes it may be an act of a rope, especially because some decisions may have unforeseen consequences, because not every business investment has a predictable result.