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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › extracting value from a company
dear sir, can u plz explain me fews lines i read in my text book…
“Traditional institutional investors and fund managers are broadly supportive of company mangmnt , and rely on the mangmnt to take decisions that r in best intrest of shareholders as a whole. In contrast, activisit funds in a company might try to force the company to adopt strategies they believe will ” extract value ” from the company for the benefit of shareholders. “
i dont hve concept of term “extract value from a company”
All it means is that they will try and force the company to adopt strategies that will end up giving money back to shareholders (for example, splitting the business into two and selling part of it).
ok.. thnk u
You are welcome 🙂