EthicsLesson-Unit6 - Professor and Class We are asked to discuss some thing about stocks this week The par value assigned to a share of stock bears

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Professor and Class, We are asked to discuss some thing about stocks this week. The par value assigned to a share of stock bears no relationship to the market value of that share of stock (i.e., the price at which the stock sells to an investor/owner.) The market value, however, should reflect some real or perceived value of the corporation. Gigi Liken and Ron Bobo are organizing Gold Unlimited Inc. to undertake a high risk gold mining venture in Canada. Gigi and Ron plan to request authorization for 75,000,000 shares of common stock to sell to the public. They have decided to set a par value of $1.00 per share in order to appeal to investors. They feel investors would be more likely to invest if they feel they are getting a large number of shares for a bargain price. 1) Are Gigi and Ron behaving in a professional manner? I feel that as long as they are completely open and honest with their investors about the high risk of the investment, they would be acting in a professional manner. However, if they choose to conceal
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This note was uploaded on 12/08/2009 for the course AC 116 AC 116 taught by Professor Unknown during the Spring '09 term at Kaplan University.

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