First, the concept is clear. The maximization of shareholders' wealth can be measured by the stock market price;
Secondly, consider the time value of funds;
Thirdly, consider the risk factors scientifically, because the level of risk will have an important impact on the stock price; Fourthly, the maximization of shareholders' wealth can overcome the short-term behavior of enterprises in pursuing profits to a certain extent, because not only the current profits will affect the stock price, but also the expected future profits will have an important impact on the stock price of enterprises;
Fifth, the goal of maximizing shareholders' wealth is relatively easy to quantify, which is convenient for assessment and reward and punishment.
At the same time, we also see some shortcomings in the process of pursuing the maximization of shareholders' wealth:
(1) only applies to listed companies, but it is difficult to apply to non-listed companies. As far as China's current national conditions are concerned, listed companies are not the main body of China enterprises, so in reality, maximizing shareholders' wealth is not suitable as the goal of China's financial management;
(2) Maximizing shareholders' wealth requires efficient financial markets. Because of the dispersion of stocks and the asymmetry of information, managers may make adverse selection at the expense of shareholders in order to maximize their own interests.
(3) The stock price is influenced not only by financial factors, but also by other factors, so the stock price cannot accurately reflect the business performance of the enterprise. Therefore, the goal of maximizing shareholders' wealth has been questioned by the theoretical circle.
Securities investment risk:
1. Macroeconomic risk: Changes in the macroeconomic situation in China, the macroeconomic environment in neighboring countries and regions, and changes in the surrounding securities markets may all cause fluctuations in the domestic securities market, making it possible for investors to lose money, and investors will have to bear the resulting losses.
2. Policy risk: Changes in laws, regulations and relevant policy rules in the securities market may cause price fluctuations in the securities market, making it possible for investors to lose money, and investors will have to bear the resulting losses.
3. Operational risks of listed companies: due to changes in the overall operating conditions of the industry in which listed companies are located; Management of listed companies and other factors, such as major mistakes in business decisions, changes in senior management personnel, major lawsuits, etc. , may cause fluctuations in the company's securities prices; Due to the poor management of listed companies, it may even lead to the company's suspension and delisting, which makes it possible for investors to lose money.
4. Technical risk: As transaction matching and market disclosure are realized through electronic communication technology and computer technology, these technologies may be attacked by cyber hackers and computer viruses, thus bringing losses to investors.
5. Risks caused by force majeure: earthquake, fire, flood, war and other force majeure factors may lead to the paralysis of the securities trading system; Uncontrollable and unpredictable system failure, equipment failure, communication failure, power failure, etc. The paralysis of the securities business department may also lead to the abnormal operation or even paralysis of the securities trading system, resulting in the inability of investors to close their positions or all transactions, and investors will have to bear the losses caused by this.
6. Other risks:
(1) Investors may suffer losses due to password loss, improper operation, investment decision mistakes, etc. The losses shall be borne by the investors themselves; Any other person's promise of profit or loss to investors in securities trading is unfounded, and similar promises will not reduce the possibility of investors' losses.
(2) Losses caused by malicious operation by others after the online transaction and hotkey operation are completed, but they do not quit in time; Among them, if online transactions are not cashed out in time, they may be attacked by hackers and cause losses.
(3) Entrusting others to act as agents for securities trading, and not paying attention to account changes for a long time, resulting in losses caused by malicious operations of others.