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REFLECTION-2

Last time, I learned about what is a shareholder as discussed by Kevin’s group. While the

report is going on, I came to ask myself, what should a shareholder do? It was a crystal clear

delivery of presentation by the group and I understand what it is all about. According to the

definition itself as cited by the reporter, it is an external factor of a company who owns a

particular share of a company’s stock. Furthermore, there is this so-called shareholder value in

which the main target is the ability to gained profit. I think it is significant because the company

itself aimed a particular purpose which is to invest more through shareholders to achieve the

pavement of gaining assets. Hence, it has to be noted and understood that the profitability

performance differs from each other in accordance to the desire target of the company.

On the other hand, financial leveraging as discussed further is equivalent to raising

capital. In my own perspective, capital plays an important role in the mainstream of business. It

serves as a starting point to invest a particular asset or goods for example. That is why, the

financial market is the perfect avenue to initiate the capital raised by the company. I came to ask

myself again why market is the best way of leveraging money. As I ponder on this question,

came to realize that customers and clients as well serves as the helping factor to consider in

magnifying the start of investment process. Therefore, without the continuity of customer’s

relationship, the entire business will collapsed and fall.

Moreover, I also learned from the report also that the company can suffice its own

through internal financing. It is the ability to use its own profit in order to sustain the long run of

the business. As a whole, financial management does not only look on the how to manage

financially but it seeks to determine the internal and external environments which made the
company to invest in the future. I think, employee’s relationship towards each other are cores for

better progress.

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