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1) the number of people employed in the firm.
2) the book value of the firm's assets less the book value of its liabilities.
3) the amount of salary paid to its employees.
4) the market price per share of the firm's common stock.
>>>>>4) the market price per share of the firm's common stock.
Shareholder wealth is the collective wealth conferred on shareholders through their investment in a company. Members of the board have a fiduciary duty to the shareholders and a responsibility to protect their investment by running the company sensibly and in line with generally accepted practices. Failure to do so can result in penalties, including shareholder votes to remove board members as well as fines and jail time in some cases.
Each shareholder holds a small portion of the company. Issuing more shares will dilute shareholder wealth, while providing dividends to existing shareholders will increase it. The value of the company waxes and wanes over time, causing corresponding rises and falls in shareholder wealth. Investors who purchase stock may take a long position with the goal of profits at a future date, or they may intend to capitalize on their wealth by selling the stocks to another party and making money on the transaction.
Companies can determine shareholder wealth by looking at overall company value in terms of the current value per share and number of stocks issued. Sometimes board members must make strategic decisions that will temporarily reduce shareholder wealth, such as investing in new facilities or technologies. These investments will add value later, and are acceptable to shareholders because they demonstrate a desire to grow the company. Bad business decisions may result in losses with no projected future gain, and can be a cause for concern.
4) the market price per share of the firm's common stock.
Option is answer 4)<<<<<<<<<<<<<<<<<
Number4) the more shares you have .. the more voting rights ... the more money when the stock is up or is splitting...
The answer is num.
4) the market price per share of the firm's common stock.
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I agree to4) market price of common stock
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