Shareholders of corporate stock may have claims to a company’s assets and income.” Discuss and analyse...

Shareholders of corporate stock may have claims to a company’s assets and income.” Discuss and analyse this quote.

Solutions

Expert Solution

Individuals that own shares of company stock are viewed as the true owners of that company. As such, a shareholder has specific privileges and rights that are governed by the laws that prevail in the state where the company is headquartered. The most important rights that all common shareholders possess include:

1. The right to share in the company's profitability, income, and assets

2. A degree of control and influence over company management selection

3. Presumptive rights to newly issued shares.

4. General meeting voting rights.

Shareholders have the right to participate in a company's profitability for as long as they own the shares. In addition to a share in profits generated by the company, shareholders also have rights to income distributions through dividend payments. If a company's board of directors declares a dividend in a certain period, shareholders are in line to receive it.Dividends are not guaranteed, however. If the company is liquidated, shareholders have the right to assets and income of the company after bondholders and preferred shareholders are paid

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

b. “Shareholders of corporate stock may have claims to a company’s assets and income.” Discuss and...

b. “Shareholders of corporate stock may have claims to a company’s assets and income.” Discuss and analyse this quote.

For each of the following events, identify the impact on a company’s assets, liabilities and shareholders’...

For each of the following events, identify the impact on a company’s assets, liabilities and shareholders’ equity: declare a dividend pay a dividend create a general reserve create a revaluation surplus make a bonus issue of shares make a rights issue of shares applied the lower of cost or net realisable value rule to some damaged inventory recognised taxation expense for the year (to be paid in the following year) a controlling interest in another company was acquired by purchasing...

Panasonic company and analyse the company’s management of Business Ethics and Corporate Social Responsibility (CSR) The...

Panasonic company and analyse the company’s management of Business Ethics and Corporate Social Responsibility (CSR) The Company’s Management of Ethics  Discuss the company’s position on ethics and CSR, especially with example (300word)

Panasonic company and analyse the company’s management of Business Ethics and Corporate Social Responsibility (CSR) -...

Panasonic company and analyse the company’s management of Business Ethics and Corporate Social Responsibility (CSR) - each team in a tutorial group MUST choose a different company. A Executive Summary (one page)  Summarise the key findings and recommendations. This is NOT an Introduction. B Ethical Problems  Describe three (3) major ethical problems that have happened with the company in the recent past.  These should be actual cases supported by credible reports/sources.  Identify the causes (both...

analyse the main form of risk and uncertainty that may arise in international transactions and discuss...

analyse the main form of risk and uncertainty that may arise in international transactions and discuss the ways in which this risks can be recovered

1.) Explain the process of stock redemption. 2.) Why do non-corporate shareholders prefer stock redemptions to...

1.) Explain the process of stock redemption. 2.) Why do non-corporate shareholders prefer stock redemptions to qualify for sale treatment? (tax implications) 3.) Describe the difference between liquidating and non-liquidating distributions from a partnership. 4.) The primary purpose of taxation is to create revenue for the federal government. What are three secondary purposes? 5.) What is the purpose of Domestic Production Activities Deduction (DPAD)?

Do corporate shareholders have an obligation to make certainthat their business corporations act in an...

Do corporate shareholders have an obligation to make certain that their business corporations act in an ethical and proper manner in conducting their business. Describe some example of companies that did not behave this way. What happens when a corporation does not act ethically? Please cite some examples.

1. In which type of corporate reorganization do shareholders receive stock in at least two other...

1. In which type of corporate reorganization do shareholders receive stock in at least two other corporations, in exchange for all of the stock in the original corporation? a."Type B" reorganization. b."Type A" consolidation reorganization. c."Type D" spin-off reorganization. d.Some other type of reorganization. e."Type D" split-off reorganization. 2. A tax free corporate reorganization can be utilized to: a.Create a subsidiary. b.Combine four corporations into one. c.Resolve management issues by dividing a company into three new companies. d.Transfer assets in...

ABC paid shareholders a high dividend relative to net income, it also repurchased stock (Treasury stock)...

ABC paid shareholders a high dividend relative to net income, it also repurchased stock (Treasury stock) over the past several years. The firm relied on debt to fund an increasing share of assets. Fully identify the potential advantages and risks of such a capital structure policy and how the growing medical and economic crisis enveloping the world as of 2020 will change, even if temporarily, such strategies.

Q1: Discuss three key components of corporate governance in a company: common shareholders, board of directors,...

Q1: Discuss three key components of corporate governance in a company: common shareholders, board of directors, and management. Q2: What is agency problem? any real-world examples? Q12: Discuss the relationship between unemployment rate and stock market performance.

Subjects