What is difference between maximizing stockholder wealth and stock price? Under what assumption are they equivalent?

Answer by  bigsindc (19)

Stock Price is the equivalent of a value of a single share of the company, while stockholder wealth is the total value of the owners holdings.

Answer by  boy (177)

A corporation may enhance total return by dividend payments. Corporate buybacks may enhance underlying stock valuation by decreasing outstanding shares. Spin-offs and asset sales my unlock value. Being the target of a take-over may be the ultimate shareholder jackpot. Ultimately, each results in higher equity prices or actual cash paid.