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When an investor sells shares of its investee company what happens?
Wiki User
∙ 13y ago
If the investor sells the entire investment or any portion of it ,the equity method is applied consistently until the date of disposal.A gain or lss is computed based on the adjusted book value at that time.Remaining shares are accounted for by means of either equity method or the fair-value method , depending on the investor's subsequent ability to significantly influence the investee
Wiki User
∙ 13y ago
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When a company goes public it begins doing?
Selling shares of stock
What does going public mean for a company?
A company goes public when shares in that company are offered for sale (floated) on a stock exchange somewhere in the world. At that point the ownership (or a share of the ownership) of the company passes to the people purchasing those shares - the public! Before this flotation the company will have been owned privately and the flotation produces funds which goes to these owners as they are in effect selling their property.
What is Mission and vision of Yamaha company?
To be the market leader, a occupy a huge amount of shares.
Who is a market maker?
Market makers- These are investment banks (eg Goldman Sachs) that partake in IPO's (initial public offerings) An IPO is done when a private company wants to 'go public', they ask investors and fund managers to buy shares in a company, when the company has fully, or nearly fully sold out then they launch the company on to the stock market. Another aspect market makers do is to generate more equity in a company, they do this buy issuing more shares in a company, effectively diluting the value of the other shares. In order to stop existing shareholders being annoyed by the decreased value of their holding they offer them the right to buy the shares (take up their rights) or to receive free shares to compensate them.Stockbrokers- Buy and Sell shares on behalf of investors. They can control the price of companies by waiting and mass buying or selling shares which can effect the price drastically.Fund Managers- these include unit trust, OEIC (open ended investment companies), Hedge Funds and Investment Trust managers. They manage trillions of assets on behalf of investors and in extreme circumstances can cause the rise or fall of a company in a matter of hours.
When people want invest in the stock market they buy?
They buy shares of a company's stock. Each individual stock is ownership within that company. What they actually buy in terms of types of companies is totally dependent upon their individual preferences. That may be a tech company like Apple, a health company like Johnson & Johnson, or a motor vehicle company. Each company's stock has an individual price based on company performances, earnings, market trends and other factors. When you finally buy a company's stock whether 1 or 1,000,000, you own a portion of that company. The total value if your investment is stock price * number of shares. So if you buy 1,000,000 shares at $10 your total value is $10,000,000. The price of a stock will fluctuate up and down and the value of your investment will reflect that.
How does an investor get ownership interest in a company?
by purchasing shares in the company
What are shares?
A share in a company gives you as an investor a share in its dividend.
Is an investor the same as a shareholder?
Nearly yes. An investor for a company is someone who has invested in the company. He may be someone who bought Bonds issued by them or equity shares issued by them. If he has bought equity shares from them, then they are both same.
An investor injects capital in to a private limited company. how are they paid back?
Whether the investor would receive shares is subject to the investment agreement. If shares are given they would normally be granted based on the value of the investment as a percentage of the value of the company.
Difference between bonds shares and mutual funds?
The difference between bonds shares and mutual funds is in their definition. Bond shares refers to the individual shares that an investor owns in a company while mutual fund is the collection of all the stocks and shares in a company.
What are dormant shares?
Dormant Shares are shares which are inactive, it may be the shares of InactiveCompany (Dormant Company)orThe shares which are Closely held by companies, these are more stable than other companies.Share prices of Dormant shares are determined by the company's value and not by investor sentiment.- Sudheer Koppala
Who are equity shareholders?
Equity shareholders are investors that own the shares of the firm. As an investor you need to pay to get ownership of the shares. The shares are either bought from another investor, or from the firm, when the shares are issued.
Why is GM halted?
FINRA halted GMGMQ shares on Friday July 10th due to investor misconception regarding which company the shares represent. Motors Liquidation Co. is what GMGMQ shares comprise. The "new" GM company shares are not issued yet and will not do their IPO until 2010 sometime.
Is there a limit to the number of shares a investor can own?
No, there is no limit to the number of shares an investor can own. However, certain regulations, such as antitrust laws, may come into play if an individual or entity acquires a significant percentage of a company's shares. Additionally, some companies may have bylaws or policies that restrict the ownership concentration of shares.
What is a share purchase agreement?
a share purchase agreement is an agreement that summarize the condition of the investment made by the investor in return for shares in the company
Someone who buys and sells shares?
investor
Is issuing stock the same as selling stock?
Not necessarily. If you are the company whose name is on the stock and you are selling shares of stock that were just created, that would be issuance. If you are a market maker, an individual investor or a company who sells stock they bought from an investor, that would be sales.
