Wealth: Difference between revisions

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In shareholder value analysis, the term 'shareholders' wealth' is sometimes used in place of shareholder value.
In shareholder value analysis, the term 'shareholders' wealth' is sometimes used in place of shareholder value.


It emphasises that shareholders' total wealth includes their cash, including cash derived from their investment in shares, as well as the current market value of the shares themselves.
It emphasises that shareholders' total wealth includes their cash, including cash derived from their investment in shares, as well as the current market value of the shares themselves (reflected in the share price).


This thinking may usefully lead to company management paying out cash from the company when appropriate, rather than keeping too much cash in the company.
This thinking may usefully lead to company management paying out cash from the company when appropriate, rather than keeping too much cash inside the company.





Revision as of 16:24, 17 August 2016

1.

Abbreviation for wealth management services and related investments.


2.

In shareholder value analysis, the term 'shareholders' wealth' is sometimes used in place of shareholder value.

It emphasises that shareholders' total wealth includes their cash, including cash derived from their investment in shares, as well as the current market value of the shares themselves (reflected in the share price).

This thinking may usefully lead to company management paying out cash from the company when appropriate, rather than keeping too much cash inside the company.


See also