Common stock valuation, Auditing

Common stock valuation

1. Features of common stock (You may review common stock learned from TCA 221)

a. Residual claim on income and assets (after debt holders and preferred stock holders had their claims)

b. Has voting rights

c. Proxy - can designate the voting power to the management at the annual meeting.

d. Two different voting procedures:

Majority voting - One share has one vote. A board of directors (BOD) position is elected by a simple majority.

Cumulative voting - One share can have a number of votes equal to the number of BOD members to be elected. It gives minority shareholders the power to elect a director (The minority shareholders may cast all votes to one candidate to increase his or her chance of being elected).

e. Limited liability - Shareholders' liability is limited to the amount of their investment in the company.

Posted Date: 2/18/2013 6:45:20 AM | Location : United States







Related Discussions:- Common stock valuation, Assignment Help, Ask Question on Common stock valuation, Get Answer, Expert's Help, Common stock valuation Discussions

Write discussion on Common stock valuation
Your posts are moderated
Related Questions
YvesLaurent has just been put in charge of the BeautyNatural Inc. audit.BeautyNatural is a small, but growing retail chain of natural cosmetics stores. BeautyNatural needs to borro

Cash and Window Dressing - Building Society Cash Possibility of misappropriation and error usually accompany the handling of cash. Building societies transactions towards

Deferred Taxation - Audit Process Deferred Taxation results from the fact such the income tax department require different rules for calculating profits from those used throug

Question : (a) Describe the following terms: 1) Forensic Accounting; 2) Forensic Investigation; 3) Forensic Auditing. (b) Explain the basic elements to consider for

what is the role of audit trainee in managing the discrete assignment?

Explain the purpose and content of a statutory audit report. Explain what recommendations you would make to the case study business Statuary and Non- Statuary audits In


Question: "The planning, testing, and evaluation of audit evidence for indicia of fraud are unlikely to be successful without that attitude, particularly because fraud is a cri

Definition of Audit Evidence "Audit evidence" which is all the information used through the auditor in arriving on the conclusions on such the audit opinion is support, and in

Plant and Machinery - Valuation and Authorization Valuation Valuation is at depreciated historic costs.  Auditor's duty is to make sure that the accounting policy for dep