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Value for Shareholders
It is a debate whether a company should create actual value for their shareholders or not.

Here are some tangible ways it can do so:

  1. Acquisitions.

By acquiring another company, an enterprise adds revenue/operating income/net income for shareholders and may actually inflate its future expectations.

Beware of cash misusage and issuing stock for the purchase.

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  1. Paying Dividends.

This is the most tangible way a company can create value for their shareholders. It puts money in their pockets.

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  1. Repurchase of Stocks.

By buying back shares, a company diminishes the amount in circulation, which in turn, increases the price per share.

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