ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A rise in the stock price can increase the shareholder’s wealth and this can only be possible in the long run. A corporation is that type of organization which is most suitable to raise capital through public offerings. Shares and bonds can be issued for the same.

Detailed explanation-2: -In addition to building wealth for the organization itself, corporations strive to maximize the wealth of their stockholders. Common strategies and methods corporations use to maximize wealth include building their credit, investing in real estate or other investment products and boosting stock prices.

Detailed explanation-3: -It is about the increase in the value of return of the shareholders Wealth maximization is influenced by many factors, such as Growth in sales, investment decision, financing decision etc. This objective of maximization of wealth of Equity Shareholder automatically fulfills many other objectives.

Detailed explanation-4: -Wealth maximization is the concept of increasing the value of a business in order to increase the value of the shares held by its stockholders.