The Goal of corporation???

2008-05-13 7:05 am
What is the difference between stock price maximisation and profit maximisation?

回答 (1)

2008-05-16 10:04 am
✔ 最佳答案
Stock price maximisation ~ to maximise the stock price

where stock price involve not only the profit of the company also include the future profit, the expectation of the growth of the company, the long term involvement, the image, moral etc

Profit maximisation ~ to maximize the profit of the company

ie accounting profit only ~ it can be caused by marketing to boost the sales, to sale the stock in a very low price, to sell the high value of fixed assets during the year etc... but profit maximization may not leads to stock price maximisation


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