stock price maximization requires _____.
quirements,the same actions that maximize stock prices also benefit society. First, note that stock price maximization requires efficient, low-cost plants that produce high-quality goo ds and services at the lowest possible cost. Second, stock price maximization requires the development of products that consumers want and need, so the profit mo- tive leads to new technology, to new products, and to new jobs. Finally, stock price maximization necessitates effi-
What is the difference between stock price maximization, firm value maximization and stockholder wealth maximization? Stock price maximization is the most restrictive of the three objective functions. It requires that managers take decisions that maximize stockholder wealth, that bondholders be fully protected from expropriation, that markets be efficient and that social costs be negligible. Stockholder wealth maximization is slightly less restrictive, since it does not require that markets be efficient.