Lecture 11 Shareholder's Equity

Lecture 11 Shareholder's Equity - LECTURE 11 SHAREHOLDERS...

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Click to edit Master subtitle style 9/13/11 LECTURE 11 SHAREHOLDER’S EQUITY MGCR 211
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9/13/11 Shares All corporations (public or private) have shares. Number of shares to be issued by a company are determined in the articles of incorporation Shares can be common shares or preferred shares. A company can have different types of common shares with different rights
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9/13/11 Common Shares Common shares carry a basic set of rights l Share profits and losses l Voting rights l Selection of corporate management l Residual rights to assets upon liquidation l Rights to purchase additional shares from a subsequent issuance (to avoid diluting your interest)
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9/13/11 Preferred Shares Have preference over common shares for dividends and assets in instance of a liquidation Preferred shares can have cumulative or non-cumulative dividends If dividends are paid in a year, the preferred shareholders must be paid first Preferred shares usually do not have voting rights
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9/13/11 Preferred Shares - Cumulative What happens if dividends are not declared in a year on cumulative dividends preferred shares? l Dividends in arrears: Dividends that are owed to the preferred shareholders, but have not been declared or paid l Basically, the dividends owed to preferred shareholders will accumulate and be paid in the future
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This note was uploaded on 09/12/2011 for the course MGCR 211 taught by Professor La rocca during the Fall '08 term at McGill.

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Lecture 11 Shareholder's Equity - LECTURE 11 SHAREHOLDERS...

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