The number of shares a corporation may issue is specified in the articles of incorpor
- · 有5位网友选择 对,占比50%
- · 有5位网友选择 错,占比50%
A、authorized shares
B、issued shares
C、unissued shares
D、outstanding shares
In order to gains more money from its investors, a corporation may issue split stock.
A.Y
B.N
C.NG
A、Outstanding stock may be defined as shares of a corporation’s stock which have been issued and then required, but not canceled.
B、Treasury stock may be defined as shares of a corporation’s stock which have been issued and then required, but canceled.
C、Treasury stock may be defined as shares of a corporation’s stock which have been issued and then required, but not canceled.
D、None of the above.
Which of the following is not true?______.
A.Common stock is a security that represents ownership in a corporation.
B.Authorized stock is the maximum number of shares that a corporation is legally permitted to issue under its articles of incorporation.
C.Outstanding slock is stock that has not been bought by investors.
D.None of the above.
A.Issued stock.
B.Outstanding stock.
C.Common stock.
D.Preferred stock.
E.Authorized stock.
Germane has a number of relationships with other companies.
In which of the following relationships is Germane necessarily the parent company?
(i) Foll has 50,000 non-voting and 100,000 voting equity shares in issue with each share receiving the same dividend. Germane owns all of Foll’s non-voting shares and 40,000 of its voting shares
(ii) Kipp has 1 million equity shares in issue of which Germane owns 40%. Germane also owns $800,000 out of $1 million 8% convertible loan notes issued by Kipp. These loan notes may be converted on the basis of 40 equity shares for each $100 of loan note, or they may be redeemed in cash at the option of the holder
(iii) Germane owns 49% of the equity shares in Polly and 52% of its non-redeemable preference shares. As a result of these investments, Germane receives variable returns from Polly and has the ability to affect these returns through its power over Polly
A.(i) only
B.(i) and (ii) only
C.(ii) and (iii) only
D.All three
A.total of 50 shares of Best Corporation’s common stock.
B.total of 950 shares of Best Corporation’s common stock.
C.total of 1,000 shares of Best Corporation’s common stock.
D.total of 1,050 shares of Best Corporation’s common stock.
Some companies enable stockholders to share in the profits of the company. These payments of corporate profits to stockholders are called dividends. In addition to having a claim on company profits, stockholders are entitled to share in the sale of the company if it is dissolved. They may also vote in person or by proxy on a variety of corporate matters, including the most important matter of who should run the corporation. When the company issues new stock, stockholders have priority to buy a certain number of shares before they are offered for public sale. Stockholders also receive periodic reports, usually quarterly, that provide information regarding the corporation's business performance. Stocks generally are negotiable, which means stockholders have the right to assign or transfer their shares to another individual.
A stockholder is considered a business owner and has the protection of limited liability under United States laws. Limited liability means that a stockholder is not personally liable for the debts of the corporation. The most a stockholder can lose if the company fails is the amount of his or her investment -- what he or she originally paid for the stock. This arrangement differs from that of other forms of business organization, which are known as sole proprietorships and partnerships. These business owners are personally liable for the debts of their businesses.
Corporations have good reasons to issue stocks. They issue stock in order to finance their business activities. This method of raising funds is only available to business firms organized as corporations; it is not available to sole proprietorships and partnerships. The corporation can use the proceeds of a stock offering in a variety of ways. Depending on the type of company, this might involve increasing research and development operations, purchasing new equipment, opening new facilities or improving old ones, or hiring new employees.
An alternative to stock financing is debt financing or the sale of bonds, an interest-bearing loan. This alternative is also available to sole proprietorships and partnerships. With the issuance of a bond a company typically promises to make periodic interest payments to the lender or bondholder as well as pay back the amount of the bond when the term of the bond comes to an end. Thus bonds are evidence of loans while stocks are evidence of ownership. Stocks and bonds are collectively known as securities.
When a corporation first makes stock available for public purchase, it works with an investment banking firm to arrange an initial public offering (IPO). The investment bank acquires the first issue of stocks from the corporation at a negotiated price, and then makes the shares available for sale to its clients and other investors.
A corporation can only have one IPO -- the first time it makes stock available to the public. After its IPO, a company is said to be public. Public corporations that need additional financing for further business development may choose to issue more stock at a later time. This is called a subsequent, or follow-on, offering.
Some corporations may choose not to go public. In this case it is said to be a privately held corporation. A corporation may elect to remain private because it docs not want to share its profits, or it may not want to give up control to shareholders.
Most of the information reported in the daily news media about the buying and selling of stock refers to transactions involving previously issued stock. The daily buying and selling of stock rarely involv
A.Y
B.N
C.NG
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