stocks - 2010-02-011STOCKS2010-02-01Stocks Topic...

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Unformatted text preview: 2010-02-011STOCKS2010-02-01Stocks Topic Slides2Typical Organization Structure of a Corporation2010-02-0122010-02-01Stocks Topic Slides3How are Corporations Organized?Shareholders:cHave purchased ownership of a company in the form of shares cShare in earned income (dividends)cShare in the distribution of assets upon liquidation of the companycHave first (pre-emptive) right to purchase new shares issue (maintain same % ownership)cSome shareholders have the right to vote to elect board members, etc.cMay vote by proxy at the annual general meeting2010-02-01Stocks Topic Slides4How are Corporations Organized? (cont.)Board of Directors:cElected by the shareholders to protect their financial interestscSet corporate policycReview the actions of the executivescDeclare dividends, set executive salaries, authorize key contracts, etc.Corporate Officers:cAppointed by the board to run the businesscGenerally do not report to the shareholderscGenerally includes president, vice president(s), treasurer, secretary, controller2010-02-0132010-02-01Stocks Topic Slides5Common and Preferred StockscShareholders can own two types of stock COMMON and PREFERRED.COMMON:cBasic type of stockcGenerally have voting, dividend and liquidation payment rights2010-02-01Stocks Topic Slides6Common and Preferred Stocks (cont.)PREFERRED STOCK:cPreferred as to dividends cCumulative dividend rights cIn the event of bankruptcy, first claim to company assets (following creditors)cNo voting powercCould be callable/redeemable cSome preferred stock have a convertible feature allowing them to convert to common stock2010-02-01...
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This note was uploaded on 11/09/2010 for the course BUSINESS 2257 taught by Professor Iandunn during the Fall '10 term at UWO.

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stocks - 2010-02-011STOCKS2010-02-01Stocks Topic...

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