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What are shares of stock currently owned by the firms shareholders called?
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Disadvantages of long term external finance?
If the business is making profits, a percentage of it's profit has to be distributed to shareholders and other firms where it has gotten finance from.
Firms raise capital from investors by issuing shares in the primary markets does this imply that corporate financial managers can ignore trading of previously issued shares in the secondary market?
It can be never ignored. It is inevitable for a firm to seek funding sources for further growth as a going concern entity. The funding method would mostly take a form of issuing either bonds or stocks. For the firms seeking funding, the price of the previously issued shares can affect the company's financial decisions directly. This also relates to repurchasing its shares or using its shares to finance a merger or acquisition.
What do stock trading brokers do?
Stockbrokers are regulated professionals associated with brokerage firms or broker-dealors, although some are independent. They buy and sell shares and securities for their clients.
Why is shareholder wwealth maximization be a beter operating goal than profit maximization?
A firm's operating goal should be to maximize shareholder wealth as it is shareholders who are the owners of the firm. Profit maximizing however is more of a personal/management oriented type goal as it only benefits those running the company. This problem is known as the Agency issue, and it is directly related to the asymmetry of information problem that all firms suffer from. Typically, higher ranking persons in a company, usually managers, know a lot more about the firms operations than do subordinates and common stock holders; this information may be exploited so that only profits and managements' personal pay packets are maximized, and shareholders who funded the firms operations by their purchase of ordinary equity benefit none as they experience no gain through increase in share value. In order to overcome this issue, several things can be done. For example, monitoring techniques can be put in place to ensure management is acting in shareholder interest and not their own, or alternatively, management pay packets can be directly linked to the goal of maximizing shareholder wealth. If and when this goal is achieved and shareholders realize gains, management may be paid a cash bonus or an allotment of shares. Put simply, shareholder wealth maximization should be the firms operating goal simply because they are financing the firms operations with their investing in the firm; to act against their interests is unethical, but still not unheard of.
What is the financial leverage multiplier?
The leverage multiplier equals to total asset dividing by shareholders' equity. The high leverage multiplier indicates that the firms decide to overcome the high levels of borrowing or debt on which it must pay interest. The higher ratio means higher liability than its shareholders' equity. Essentially, the ratio is mainly used to help firms making decision about how to raise funds by undertaking debts. A company will only undertake significant amounts of debt when it believes that return on assets (ROA) will be higher than the interest on the loan.
Who are the shareholders of H J Heinz Company?
The H J Heinz Company's parent organization is Kraft Heinz, and its shareholders include a range of institutional investors and individual shareholders. The largest shareholders typically include pension funds, hedge funds, mutual funds, and other investment firms. The specific list of shareholders can change over time due to buying and selling of shares in the company.
How much of the firms earning are left as balance after the firms pay out dividends to its shareholders?
It depends how successful the business is
What investment firms bought shares in AIG?
Several investment firms bought shares in AIG. Some of the investment firms are Ameriprise, Wells Fargo, Morgan Stanley, Fisher's Investments, and Charles Schwab.
Should firms behave ethically?
Firms should behave ethically if they wish to retain the trust of their customers and shareholders. Companies that behave ethically have a competitive advantage in terms of branding and reputation.
What is bear and bull in share market?
as far as i have learn t that bull market ,is when a particular firms shares been bought increases compared to another firm. while bear, is when a firms shares been bought reduces compared to another firm.
Why are acquisition and merger strategies popular in many firms competing in the global economy?
Firms use merger and acquisitions strategies to improve their ability to create more value for all stakeholders, including shareholders
What type of job does Alan Greenspan currently do for a living?
Alan Greenspan is a private advisor. His company is called Greenspan associates and he consults for his firms through out his companies.
Disadvantages of long term external finance?
If the business is making profits, a percentage of it's profit has to be distributed to shareholders and other firms where it has gotten finance from.
Why Founders shares are a type of classified stock where the shares are owned by the firms founders and they generally have more votes per share than the other classes of common stock?
They wanted a gold toilet
What is the difference between partner and shareholder in Law firm?
There is no difference. Law firms used to operate as partnerships, and owners came to be known as partners. For liability purposes, firms began to form corporations, which are owned by shareholders. The old term "partner" stuck.
Firms raise capital from investors by issuing shares in the primary markets does this imply that corporate financial managers can ignore trading of previously issued shares in the secondary market?
It can be never ignored. It is inevitable for a firm to seek funding sources for further growth as a going concern entity. The funding method would mostly take a form of issuing either bonds or stocks. For the firms seeking funding, the price of the previously issued shares can affect the company's financial decisions directly. This also relates to repurchasing its shares or using its shares to finance a merger or acquisition.
What is the difference between a cooperative and a public limited company?
A public limited company is owned by its shareholders. The number of shareholder can range from just two or a handful of shareholders who own 100 per cent of the company, right up to many millions of shareholders who may be spread across many different countries. In these firms it is impossible for all the shareholders to manage and run the business from a day to day so they usually appoint a board of directors to do this on behalf. Ordinary shareholders have voting rights to elect directors and to vote on company policies. The more the ordinary shares a shareholder owns, the more votes they have.In contrast, a cooperative is owned by its members. Any person can become a member by buying a share and each member is only allowed one vote regardless of the number of shares they hold. Members can vote on business policies and the election of a board of directors. In worker cooperatives, the workers in the business organization are its member or shareholders.The sale of shares in the ownership of both public limited companies and cooperatives helps these businesses raise money to finance their activities. Cooperatives usually only sell shares to people who shop or work in their business A public limited company, however, can advertise and sell shares to other companies and member of the general public through a stock exchange. As a result, it is often very expensive to set up a public limited company.Any profits made by a public limited company are owned by its shareholders. Profits after tax and not reinvested in the business will be redistributed to shareholders as dividend. Each share is paid a dividend from the profits, so the more shares a shareholder owns the greater the total dividend or share of profitthey will receive. In the same way, the profits of a cooperative are distributedto its member. In retail cooperatives, profits may also be used to lower prices for members to enjoy.
