MGMT 20000 Chapter Notes - Chapter 10: Treasury Stock, Common Stock, Employee Stock Ownership Plan
30 Jun 2016
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Learning objective 1 identify the advantages and disadvantages of the corporate form of. Articles of incorporation: corporate charter describing: The board of directors establish corporate policies and appoints officers who manage the corporation. Corporation first raise money from founders of the business, friends, and family. To grow, companies seek investments from: angel investors. Wealthy individuals in the business community willing to risk investment funds on a promising business venture. Provide additional financing, often in millions, for a percentage ownership in the company. Many firms look to invest in promising companies to which they can add value through business contacts, financial expertise, or marketing channels. Companies that specialize in brining startups to market, more dollars, and more ownership: initial public offering (ipo) The first time a corporation issues stock to the public. Public: allows public investment, many shareholders, stock trade on stock exchanges or by over-the-counter (otc) trading, regulated by the sec, examples wal-mart, microsoft, intel, etc.
