MGCR 211 Lecture Notes - Lecture 19: Weighted Arithmetic Mean, Financial Statement, Dividend Payout Ratio

• School: McGill University
• Department: Management Core
• Course: MGCR 211
• Professor: Seda Oz

Document Summary

Lecture 19, nov 21st: notes, bonds, leases, the debt holders are legally entitled to repayment of their principal and interest claims. Issue equity: common and preferred stock, the shareholders, as owners, have voting rights, limited liability, and a residual interest in the corporate assets. To raise capital, the corporation sells ownership rights as shares. If it is a public company then the company will be selling stocks. Shares can be divided into different classes: common shares, preferred shares. Ownership rights are specified in articles of incorporation: rights in voting, dividends, liquidation. First issue normally through initial public offering (ipo: share price is set by the company. One issued, shares of publicly held companies trade on organized exchanges: at prices per share established between buyers and sellers (no direct impact on company, fair value of shares- share price- is determined by market forces.