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According to the Harvard Business Review, companies maximize shareholder value by managing their relationships with all of their stakeholders. Companies use a variety of strategies and investment options to maximize the wealth of their shareholders and create value for customers.

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  • What Does a Shareholder Do in a Company?

    Q: What Does a Shareholder Do in a Company?

    A: According to Investopedia, a shareholder is any person owning at least one share in a corporation. A shareholder has rights outlined in the corporate bylaws. The shareholder can review the company's financial books and sue for actions that negatively impact the corporation.
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  • What Time Does the NASDAQ Open?

    Q: What Time Does the NASDAQ Open?

    A: NASDAQ Trader reports that the NASDAQ officially opens for trading at 9:30 a.m. Eastern Standard Time. NASDAQ begins preparing to open at 4 a.m. when a computer starts entering the trades and orders that were received after market close the day before, according to HowStuffWorks.
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  • What Causes Stock Market Prices to Fluctuate?

    Q: What Causes Stock Market Prices to Fluctuate?

    A: Psychology, as much as business basics, dictates the rise and fall of stock prices, says HowtheMarketWorks.com. From a business standpoint, the Federal Reserve System, the value of the dollar, inflation, deflation and politics are all major factors that make stock prices fluctuate, reports StockMarketPrimer.com.
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  • How Do Savings Bonds Work?

    Q: How Do Savings Bonds Work?

    A: Modern U. S. savings bonds are essentially a loan from purchasers to the U. S. government. They are purchased online at face value through the U. S. Department of the Treasury and accrue annual interest for up to 30 years until they are cashed in. Bonds may be cashed in as soon as six months after purchase, but bonds cashed in early are penalized the last three months' worth of interest.
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  • How Do Companies Maximize Shareholder Wealth?

    Q: How Do Companies Maximize Shareholder Wealth?

    A: According to the Harvard Business Review, companies maximize shareholder value by managing their relationships with all of their stakeholders. Companies use a variety of strategies and investment options to maximize the wealth of their shareholders and create value for customers.
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  • Why Did the Stock Market Crash in 1929?

    Q: Why Did the Stock Market Crash in 1929?

    A: The stock market crashed in 1929 because investors had put too much capital into the stocks by borrowing large amounts of money that they did not truly have. Large sums of money were invested in certain stocks because many investors thought that they were a sure thing.
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  • What Is the Formula for Interest Compounded Annually?

    Q: What Is the Formula for Interest Compounded Annually?

    A: The formula for interest compounded annually is FV = P(1+r)n, where P is the principal, or the amount deposited, r is the annual interest rate, and n is the number of years the money is in the bank. FV is the amount of money the depositor would have after n years, or the future value of that investment.
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  • How Do Mutual Funds Work?

    Q: How Do Mutual Funds Work?

    A: Mutual funds work by combining the money of many investors into a single, professionally managed investment. The resulting pool of money can be invested in a wide variety of investments, including stocks, bonds or even other mutual funds.
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  • What Is the Rule of 85, and How Does It Affect Retirement?

    Q: What Is the Rule of 85, and How Does It Affect Retirement?

    A: The Local Government Pension Scheme 2014 reports that the Rule of 85 determines how someone's retirement benefits are decreased if the person decides to retire before the age of 65. Under the Rule of 85, a person's age at the time benefits are drawn plus the number of years of membership in a pension plan should equal 85 or more to avoid a reduction in benefits.
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  • What Is the Difference Between Assets and Liabilities?

    Q: What Is the Difference Between Assets and Liabilities?

    A: An asset is something a business owns that helps produce economic value going forward, according to Chron Small Business, and a liability is an obligation to pay money to a business or entity going forward. Companies sometimes opt to sell assets to pay off liabilities.
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  • Where Can I Get up-to-Date Stock Market Prices?

    Q: Where Can I Get up-to-Date Stock Market Prices?

    A: Up-to-date stock market prices are available on the websites of financial media sources such as CNN Money, Bloomberg News and the Wall Street Journal. Prices may also be available from websites of individual exchanges, such as the NASDAQ Stock Market.
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  • How Does Inflation Affect Interest Rates?

    Q: How Does Inflation Affect Interest Rates?

    A: As inflation occurs, the central bank is able to adjust interest rates, thus encouraging economic growth. Without adjusted interest rates, there would be little growth during times of inflation as people's purchasing power becomes less. When interest rates are lowered, people are able to continue to purchase regardless of the fact that the purchasing power has lessened.
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  • How Can I Increase My Capital Gains?

    Q: How Can I Increase My Capital Gains?

    A: A person can increase capital gains by selling particular assets at an amount greater than the purchase price, notes the Internal Revenue Service. These assets must be held for at least one year prior to being sold on the open market.
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  • What Is the Difference Between a Command and a Market Economy?

    Q: What Is the Difference Between a Command and a Market Economy?

    A: The government has more authority in a command economy, while private citizens and companies have more influence in a market economy, according to Infoplease from Pearson Education. The government directs the types and levels of production in a command market. Private producers choose the amount of goods to supply the market in a market economy.
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  • Why Is Investing Important?

    Q: Why Is Investing Important?

    A: One of the main reasons investing money is important is that it helps to create more money. As opposed to just saving money in a bank account, investing money involves choosing to use that money to buy interest or stock in order to earn a return on the money.
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  • What Is a Blue Chip Company?

    Q: What Is a Blue Chip Company?

    A: Blue chip companies have an established reputation, popularity and secure long-term growth, according to the U.S. Securities and Exchange Commission. These companies provide blue chip stocks that the Dow Jones Industrial Average uses in its index, according to the U.S. Securities and Exchange Commission.
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  • What Are Some Good Techniques for Investing in Gold?

    Q: What Are Some Good Techniques for Investing in Gold?

    A: Investment experts recommend investing in gold through a variety of avenues, including exchange traded funds, shares of mining companies, futures contracts and derivatives contracts. Some simply purchase and store gold itself. Each of these strategies comes with unique benefits and risks that are not suitable for all investors. Public interest in gold investment has spiked in recent years, creating both opportunity and risk.
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  • What Is a Revenue Model?

    Q: What Is a Revenue Model?

    A: A revenue model is a system through which a business generates income from its products and services. The revenue model is a key component of any business model. It is a business plan that guides a company in generating income by creating value for its customers.
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  • What Is a Bull Market?

    Q: What Is a Bull Market?

    A: A bull market most commonly refers to increasing stock prices on exchanges such as the NYSE and Nasdaq. It is also used to describe bond and commodity price increases. A bull market is an indication of overall economic health.
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  • What Are Toxic Assets?

    Q: What Are Toxic Assets?

    A: "Toxic assets" are assets than cannot be sold and are guaranteed to lose money. Most assets can become "liquid" by selling them off for money. Assets that cannot be sold are "illiquid," as no money can be made from them.
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  • What Are Crude Oil Futures?

    Q: What Are Crude Oil Futures?

    A: Crude oil futures are contracts related to various types of unrefined oil that are traded in global markets. Crude oil, the most traded commodity in the world, is bought and sold primarily on the New York Mercantile Exchange in the United States.
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