Communiquez avec les autres et partagez vos connaissances professionnelles

Inscrivez-vous ou connectez-vous pour rejoindre votre communauté professionnelle.

Suivre

Does profit maximization lead to highest possible share price? why?

user-image
Question ajoutée par Siham Amer , Financial Analyst , Noor Al Hikmah Group
Date de publication: 2018/10/23
Frank Mwansa
par Frank Mwansa , ACCOUNTING LECTURER , FREELANCER

Maximization of profit and stock price may not concide in all cases. Profit may be maximized but it may not increase stock prices. For instance ,short term profit can be maximized by reducing R&D expenses and other expenses but this can have long term negative impacts. As such , it necessary to assmue that profit maximization does not necessary contribute to stock price.

More Questions Like This