Mutual fund is the type of investment that works by taking investors’ money, investing that collective money in stocks, bonds, and other investments, and managing this portfolio for the investors
Mutual fund is basically a form of investment in which different investors pour in their money in various forms of securities such as stocks and bonds. These securities are taken care of by the Relationship/Money manager. This form of investment reduce the risk as investing individual's money into securities in not safe subjected to variation in market
The companies whose products are in growth phase or the company is cash cow which has a well diversified products does not have to invest in adding a new product line because their earnings are already stable enough or that they don't have to invest much because sufficient profits are left after extracting for investments. Increase in dividends has two meanings that either the management is confident enough that they think that the company will be able to earn more in the future and they will achieve better position in future which is a good news in the stock exchange and for investors as well and investor invest more in the company's ordinary stock.
Company start Stock repurchase program which is to buyback its previously issued ordinary shares which is because the management thinks that the stock is undervalued and thus they repurchase their ordinary shares so that the stock will go up in near future and this will benefit the company and the existing shareholders as well. This also helps in increasing earnings per share, return on equity, etc because the equity is reduced by share repurchase program.
Stock repurchase program is also run by the organization because they don't find any attractive opportunities. This means that the company does not have any large investment opportunities which means growth in revenue and profit can not be expected in the future years. Thus when the company starts repurchasing of stock the investor starts selling their stocks.
If the company thinks that they can increase the worth of shareholders beyond their shareholder's expectation then they don't pay dividend and invest in projects to increase the sales growth, profits and market share significantly in the coming future.
Some long term shareholders think this is a great news whereas short term investors who are looking for dividends will sell the stock which means that the stock value may fall in near future but in long run the company stock value increase when the investment will start showing its results.
The classic approach to management emerged as a management model founded by<em> Taylor </em>in the late nineteenth and early twentieth centuries, called scientific management, whose ultimate goal was to maximize productive efficiency in order to get the worker to produce more in less time.
Scientific management presents four fundamental principles proposed by Taylor:
Principle of planning
: Substitution of empirical methods by scientific methods, there is a rationalization of work through time and execution studies.
Principle of worker preparation
: Workers should be selected to work in areas according to their abilities and should be adequately trained so that they can produce more according to the demands of the organization.
Principle of Execution
: It requires tasks and responsibilities to be distributed so that the work is performed with greater rigor and discipline within an established average time. From this came job and job designs that split functions to maximize productivity.
Scientific methods were implemented to reduce costs and uniformity. The work is overseen by a number of expert supervisors and the man is seen as being economical, who is motivated to produce more when he receives monetary rewards.