Shareholder Value - GCSE Business Definition

Shareholder value is the worth delivered to individuals or entities that own shares in a company, primarily through the profitability and growth of the business. It highlights how well a company is performing financially and its ability to provide returns to its investors. These returns can be through dividends, which are regular payments made to shareholders, or through an increase in the company's share price, which allows shareholders to gain financially when they sell their shares.

Maximising shareholder value is often a primary goal for businesses, as it reflects their financial health and sustainability in creating wealth for investors. This concept helps GCSE Business students understand the motivations behind many business decisions and strategies aimed at enhancing a company's financial performance.