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
techniques of vouching

Audit Work on the Holding Company We will focus on the verification of investments in subsidiary companies. 1. Get a schedule that should contain the following information. A

The first work you do in IDEA IS SECTION 2.5. The accounts receivable folder that you are instructed to select on page 25 is a folder that you are to create previously on page 23.

You have been assigned to carry out a stock take in a company. Your Audit Supervisor has given you with an audit programme. As part of a briefing session to your juniors, you a

should your test for unrecorded liabilities be affected by the fact that a letter is obtained in which a responsible management official certifies that to the test of his knowledge

Factors Affecting Statistical Technique Factors to be taken into concern before adopting statistical techniques as: a) The number of clients to whom it is appropriate since

The Business Risk Approach to Auditing In recent years the broader concept of business risk has been developed by the larger firms. It was the subject matter of the ICAEW audit

Government has recently set up a parastatal body responsible for waste management in Mauritius. The management is unsure as to the need for an audit and the setting up of an intern

Communications to Regulatory and Enforcement Authorities The auditor’s professional responsibility to sustain the confidentiality of client information ordinarily prevents repo

Information in the Fixed Assets Register The register can obtain the following information: i. Fixed asset number. ii. The cost and the date of purchase. iii. Descrip