PPT-Stock Personal Finance Stock: Ownership Shares in a Corporation

When a company makes money has positive earnings it can do two things with that money often a combination of these two things Reinvest the earnings into the company Retained earnings Payout the earnings to the owners the stockholders as . Mechanics of Shorting a Stock. Joe Nau. What is Short Selling?. When does it mean when an investor “goes long”?. When an investor goes . short. , they anticipate a decrease in share price. What happens when you buy shares of a company?. SOLE PROPRIETORSHIP. A one-owner business. The owner is solely responsible for the venture’s operation.. Sole Proprietorship. ADVANTAGES:. You’re your own boss!. Keep all the profits. Control over . Richard Eisenbraun. Jean-Philippe Couture. Tax-Efficient Financing for . Start-Ups in the Energy Sector. Typical Energy Start-Up. New or Existing Corporation. One Class of Common Shares. Initial Private Placement. Mr. Bernstein. Sources of Consumer Credit, . pp. . 154-161. March . 12, . 2013. Stock Market Analysis . & Personal Finance. Mr. Bernstein. Sources of Consumer Credit. Commercial Banks. General Overview. The following topics are discussed in this chapter:. Subsidiary preferred stock outstanding. Changes in the parent’s ownership interest in the subsidiary. Multiple ownership levels. Business and Personal Finance Unit 3 Chapter 9 © 2007 Glencoe/McGraw-Hill. Chapter 9. Stocks. What You’ll Learn. Section 9.1. Explain the reasons for investing in common stock.. Explain the reasons for investing in preferred stock.. Sections. Cost of capital. Segmentation vs. integration. Differential costs of capital. Cross-border share listing . Foreign equity ownership restrictions. Subsidiaries’ capital structure. Cost of capital. Pharmaceutical company. Rug & upholstery. Real estate company. Car dealership. Vermont Banker’s Association. Jewelry manufacturing and imports. Advertisement company. EMC Technology. Dairy farm. Playing The Stock Market. What is the Stock Market. “A public entity for the trading of company stock at an agreed price”. One of the most important places for corporations to raise money. Corporation- Publicly owned business which has multiple levels of hierarchy . Face value - The face value is the fixed price of a share which is set by promoters and bankers while forming the company. . A . stock split increases the number of shares in a public company. The price is adjusted such that the market capitalization of the company almost remains same.. Objective. To increase promoters holding.. Increase earning per share(EPS).. Rationalize the capital structure by writing off capital not represented by available assets.. To pay surplus cash not required by business. 1) Ownership securities or owned capital.. 2) Creditorship securities or borrowed capital.. Owned Capital. The capital contributed by the owners is known as “owned capital” . This consists of initial contribution and the profits re- invested in the business . Owned capital as a source of finance has the following features :. Know the basic types of financial management decisions and the role of the financial manager. Know the financial implications of the different forms of business organization. Know the goal of financial management. 9-. 2. General Overview. The following topics are discussed in this chapter:. Subsidiary preferred stock outstanding. Changes in the parent’s ownership interest in the subsidiary. Multiple ownership levels.