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The process of taking a company private is the reverse of an initial public offering, or IPO, but involves fewer regulatory hurdles. In essence, those taking a company private buy a controlling interest in the company and then have its shares delisted from the stock exchange, effectively making it privately held. In some cases some... more »
A public offering (also referred to as an Initial Public Offering, or IPO) is typically done in order for a company to raise capital without incurring debt. Instead of producing a product or providing a service in exchange for money, the company "prints" shares of itself that investors can buy. The company can use the proceeds to run... more »
Filing Chapter 11 or 13 bankruptcy can give your business a second chance and help you avoid liquidation. With both types of bankruptcy, it's necessary to restructure your debt and operations, so that income can grow. Your plans must also be approved by federal courts before you can put them in place. more »
A Company Limited by Guarantee, or guarantee company, lacks share capital and possesses liability limited to the individual involvement of each member participating in its operation. more »
A fair and efficient system for business bankruptcy is essential for a capitalist economy. If bankruptcy was too harsh on the debtor, if would be a disincentive to valuable entrepreneurial risk-taking. But, if bankruptcy is too lax, lenders would be wary of financing business. Thus, bankruptcy law attempts to strike a balance between... more »
An IPO (initial public offering) is what it is called when a company first offers its stock to...
Whether you are selling a product or promoting yourself, PR (public relations)strategy has a...
Cha-ching! Not only can you make a profit from buying and selling stocks, but some...
Mutual funds offer you the chance to invest in several assets in one big lump, instead of...
In most mergers, you will need the consent of the corporation's shareholders to effectuate a merger. Usually, you can obtain shareholders'... more »
Your company's annual shareholders meeting should be more than a dust-dry occasion for electing directors and dealing with other... more »
Setting up a corporation sounds impressive and complex, but the truth is that to create a business, you simply have to list a few of the company's... more »
Chapter 7 bankruptcy allows a business to sell all of its assets to pay off outstanding debts. Liquidation can remove the business from debt, but... more »
A stock exchange is a corporation that provides brokers a place to trade securities such as stocks. Thus it helps organize buyers and sellers in... more »
Chapter 7 bankruptcy allows a business to sell all of its assets to pay off outstanding debts. Liquidation can remove the business from debt, but... more »
One of the ways a corporation raises capital is by selling stock. A share of stock, also known as equity share, is a share of ownership in the... more »
A mutual shareholder or stockholder is an individual or company (including a corporation) that legally owns one or more shares of stock in a joint stock company. A companys shareholders collectively own that company. Thus, the typical goal of such companies is to enhance shareholder value.
Stockholders are granted special privileges depending on the class of stock. These rights may include:
* The right to vote on matters such as elections to the board of directors. Usually, stockholders have one vote per share owned, but sometimes this is not the case.
* The right to propose shareholder resolutions.
* The right to share in distributions of the companys income.
* The right to purchase new shares issued by the company.
* The right to a companys assets during, a liquidation of the company.
However, stockholders rights to a companys assets are subordinate to the rights of the companys creditors. This means that stockholders typically receive nothing if a company is liquidated after bankruptcy (if the company had had enough to pay its creditors, it would not have entered bankruptcy, although a stock may have value after a bankruptcy if there is the possibility that the debts of the company will be restructured).
Stockholders or shareholders are considered by some to be a partial subset of stakeholders, which may include anyone who has a direct or indirect equity interest in the business entity or someone with even a non-pecuniary interest in a non-profit organization. Thus it might be common to call volunteer contributors to an association stakeholders, even though they are not shareholders.
Although directors and officers of a company are bound by fiduciary duties to act in the best interest of the shareholders, the shareholders themselves normally do not have such duties towards each other.
However, in a few unusual cases, some courts have been willing to imply such a duty between shareholders. For example, in Calif read more at » http://en.wikipedia.org/wiki/Shareholder
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