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The purchasing company will make an offer to purchase the company stock at a specific price per share. This purchase is most often made by exchanging shares of the purchasing company for the shares in the company being sold. The specific ratio of exchange is often negotiated by the Board of Directors of the company being sold. The purchasing company will want as low a price as possible for the benefit of its current shareholders. The company being sold will want as high a price as possible for the benefit of its shareholders. In a peaceful acquisition, the Board of Directors willingly sells the company.
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What is the difference between preferred and common stockholders?
Preferred stockholders have a greater claim on the assets and profits of a company compared to common stockholders. If a company is liquidated, preferred stockholders have to be paid first before the common stockholders.
What is a power of stockholders?
Stockholders can sell their shares in the company at any time
Which of following best represents the most direct power that stockholders have over the operations of a company?
Stockholders can sell their shares in the company at any time.
How can one calculate the total stockholders' equity of a company?
To calculate the total stockholders' equity of a company, add the company's total assets and subtract its total liabilities. This will give you the stockholders' equity, which represents the value of the company that belongs to its shareholders.
What is one of the powers of stockholders?
stockholders can sell their shares in the company at any time.
Who are stockholders in a corporation?
Stockholders are people who have purchased (or have been granted) shares of equity in the ownership of the company.
What most accurately describes the power of stockholders?
stockholders can sell their shares in the company at any time.
What is a stockholders shares of a company's profits?
Dividends
What most accurately describes one of the powers of stockholders?
Stockholders can sell their shares in the company at any time.
What most accurately describes the one of the powers of stockholders?
Stockholders can sell their shares in the company at any time.
How can one determine the stockholders' equity of a company?
To determine a company's stockholders' equity, you can subtract its total liabilities from its total assets. This calculation gives you the amount of equity that belongs to the company's shareholders.
How can one determine the total stockholders' equity of a company?
To determine the total stockholders' equity of a company, you can add up the company's assets and subtract its liabilities. This calculation gives you the amount of equity that belongs to the company's shareholders.
