Firstly we need to be clear that the company’s operations are based on a going concern framework and that the company’s profits are divided into long term and short term profits. The share price at the time represents only the current short-term profit. In the stock market, subsequent operations can have a very significant impact on the subsequent share price, and if management is only concerned with the current share price, it may cause problems for going concern by acting too aggressively. If there is a situation that affects subsequent ongoing operations, profits will continue to be low in the long term, even covering the false appearance of short-term profit growth due to these means, which is undesirable and unwise for the company’s development. In financial management, a company operates to maximise shareholder wealth, which is the objective of financial management. Maximising shareholder wealth means maximising wealth for shareholders through financially sound operations. More wealth refers to quality wealth and long-term wealth, rather than short-term wealth brought about through means. There are positive aspects to shareholder wealth maximisation. Shareholder wealth maximisation can be measured in terms of the market value of shares and also takes into account the time value of money. Shareholder wealth maximisation can, to some extent, overcome the short-term behaviour of companies in the pursuit of profits, as not only do current profits affect the price of shares, but expected future profits can also have a significant impact on the price of a company’s shares, so short-term profits should be avoided. Shareholders’ wealth is not only in the shares they hold that can be sold immediately, but dividends and share appreciation are also important. Shareholders’ wealth should be run as a benign asset that is sustainable over the period it is held, rather than a non-performing asset that carries a high level of risk.