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Treasury stock plus outstanding shares would be?
Issued Shares Authorized Shares = Issued Shares (sold to investors) + Unissued Shares Issued Shares = Outstanding Stock (held by investors) + Treasury Stock (stock bought back by company)
When essar steel would relist its equity shares?
Probably the shares will be relisted in 2017. The preferential shares of the investors will get matured in 2017 and for redemption, they will relist the shares.
Is there any disadvantages to issuing shares?
By issuing shares you have sold a piece of the company to investors. Some of the disadvantages include: you will be answerable to the investors and you will have to disclose company information to them that you would have preferred your competitors didn't know.
Why a company might want to raise money by selling shares?
It would need investors to start the business. To start the business they give shares to the buisness and they are paid back like a loan
What encourages people to buy shares in ownership of a company?
The dividends encourage the people to buy shares in the company as they would receive a share of the profits made by business they invested in.
What are the basics on Exchange Traded Fund operations?
According to SEC website: ETFs do not sell individual shares directly to investors and only issue their shares in large blocks (blocks of 50,000 shares, for example) that are known as "Creation Units." Investors generally do not purchase Creation Units with cash. Instead, they buy Creation Units with a basket of securities that generally mirrors the ETF's portfolio. Those who purchase Creation Units are frequently institutions. After purchasing a Creation Unit, an investor often splits it up and sells the individual shares on a secondary market. This permits other investors to purchase individual shares (instead of Creation Units). Investors who want to sell their ETF shares have two options: (1) they can sell individual shares to other investors on the secondary market, or (2) they can sell the Creation Units back to the ETF. In addition, ETFs generally redeem Creation Units by giving investors the securities that comprise the portfolio instead of cash. So, for example, an ETF invested in the stocks contained in the Dow Jones Industrial Average (DJIA) would give a redeeming shareholder the actual securities that constitute the DJIA instead of cash.
How would one seek advice to buy shares online?
Getting pertinent advice to buy shares of stock on the web can come from many financial based sites. The best for novice investors are Halifax in the United Kingdom and First Share in the United States.
What is the difference between series accounting and equalization accounting?
Series or Multi-Series Accounting is a procedure used by fund managers which issues multiple series of shares for their fund, not necessarily with the same NAV. Typically, a monthly dealing fund would issue a new series of shares for all investors that invested each month. The fund would therefore contain share classes XYZ Fund - Jan 2012 Series, XYZ Fund - Feb 2012 Series or sometimes called Series A, B, C and so on. This makes it very straightforward to calculate performance fees. In Equalization Accounting all the shares of the fund have an equivalent NAV. When new shares are issued or dilution takes place a small number of new shares is assigned to current investors to maintain the value of their investment despite the drop in NAV of the individual shares. Both approaches have benefits to certain investors
Why do investors purchase preferred stock?
With preferred shares, investors are guaranteed a fixed or sometimes variable dividend forever. One of the main advantages to being a preferred stockholder is that, should the company face financial trouble and have to liquidate, you would be paid off before the common stockholders.
Are ETFs open-end or closed-end investment companies?
According to SEC website: Exchange-traded funds, or ETFs, are investment companies that are legally classified as open-end companies or Unit Investment Trusts (UITs). However, because of the limited redeemability of ETF shares, ETFs are not considered to be-and may not call themselves-mutual funds, and differ from traditional open-end companies and UITs in the following respects: ETFs do not sell individual shares directly to investors and only issue their shares in large blocks (blocks of 50,000 shares, for example) that are known as "Creation Units." Investors generally do not purchase Creation Units with cash. Instead, they buy Creation Units with a basket of securities that generally mirrors the ETF's portfolio. Those who purchase Creation Units are frequently institutions. After purchasing a Creation Unit, an investor often splits it up and sells the individual shares on a secondary market. This permits other investors to purchase individual shares (instead of Creation Units). Investors who want to sell their ETF shares have two options: (1) they can sell individual shares to other investors on the secondary market, or (2) they can sell the Creation Units back to the ETF. In addition, ETFs generally redeem Creation Units by giving investors the securities that comprise the portfolio instead of cash. So, for example, an ETF invested in the stocks contained in the Dow Jones Industrial Average (DJIA) would give a redeeming shareholder the actual securities that constitute the DJIA instead of cash.
Would buying back stock reduce stockholders equity?
Yes buying back shares from investors is reduction of stockholders equity in business and normally it is done when excel capital is available as well as to gain more control of business.
What happens to the stock of a publicly traded company in chapter 11 if it is bought out by another company?
It can be two ways. If the other company is a publicly traded company, the shares of the acquired company would get merged with the acquiring company's shares. All shareholders of the acquired company would be issued new shares of the acquiring company at a ratio that would be defined during the acquisition. If the other company is not a publicly traded company, they may opt to retain the stocks in the market of buy them all from the investors at a predefined price that gets fixed during the acquisition.
