Problems of financial accounting questions

Question:

    
Basic rights are held by each holder of common stock?
    
The ownership is released by the preferred shareholders?
    
How stocks assessed when shares not exchanged for cash assets or services?
    
What caused the company to buy its own shares?

Answer:

    
- Provide a voice in the election of directors and determine specific policies such as corporate management compensation plan or a large corporate acquisition.
    
- Maintain the proportion of share ownership in the company through the purchase of additional common shares if and when additional shares are issued. This right is called a pre-emptive right (preemptive right) and ensure that the percentage ownership of holders of common shares of the preferred shareholders diluted without him. In recent years, pre-emptive rights have been taken away by some states.
    
- Voting rights. In many cases, the preferred shareholders tidka allowed to elect the board of directors. Voting rights can be granted in certain situations to any preferred stock issued. For example, some preferred shareholders are granted voting rights in the company, if the company could not cut pay cash dividends.
    
- Distribution of profit. Dividends received by holders of preferred stock are usually fixed amount. Therefore, if performance is very good company, preferred shareholders do not benefit. As a result of the nature of this dividend, the market value of preferred shares typically do not depend on the performance of a particular company are not as common stock having an effect at all. Even the market value of preferred stock subject to changes in interest rates, as changes in bond prices.
    
Assessment is when the shares issued to accept assets other than cash or for services received, then the market value of the stock or the market value of assets instead of cash or the market value of the property or services, which are more objective, and used as the basis for recording. If the market value of certain of the shares are available, then the number will be used as the basis for recording. Conversely, it could be more likely to determine the market value of assets or services received, such as appraisal companies.
    
- Giving stock as incentive compensation and employee savings plan.
    
- Acquiring shares necessary to meet the request of the effects that can be converted (bonds and preferred stock)
    
- Reduce the amount of equity relative to total liabilities.
    
Menginverstasikan excess cash for a while.
    
-Transfer of shares from the open market to protect against forcible taking (hostile takeover).
    
- Increase share earnings by reducing the number of shares outstanding and an inefficient asset returns to shareholders.
    
- Demonstrate the belief that the stock was rated lower by the market.

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