Shareholder wealth maximization

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Shareholder wealth maximization is the primary financial goal for managers of publicly owned companies implies that decisions should be made to maximize the long-run value of the firm's common stock.


Definitions

According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),

Shareholder wealth maximization. The primary financial goal for managers of publicly owned companies implies that decisions should be made to maximize the long-run value of the firm's common stock.

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