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
Auditors Procedures Before Stock Taking 1) Study of the clients stock taking recommendations and instructions for improvements or changes whether the auditor considers them in

Concept of Audit Evidence The auditing is an evidence gathering exercise.  It is an exercise continued out to confirm the assertions made through the management in carrying ou

problems associated with intangible asset audit


Audit of Accounting Estimates An accounting estimate is described in ISA 540 Audit of Accounting Estimates as 'an estimation of the amount of an item in the absent of a precis

It is a compulsory audit Completed by a CA. Finance Audit conduct by the CA to compliance the legal requirements of monitory issues.

Accounting Principles - Intangible Assets IFRS 3 prescribes the financial reporting through an entity whenever it undertakes a business combination. A business combination is

IAS 36 Impairment of Assets It is very necessary for the auditor to determine the client's method for determining and accounting for impairments.  Corresponding IAS 36, 'impai

A. Board of Directors Best Buy's Board is elected by the shareholders to oversee the business and affairs of the company.  The board counsels, advises and oversees management wi

Authoritative Document is IAS 17 Leases The suitable technique of amortization or depreciation to require in the case of leasehold property and freehold buildings is straight-