# MGCR 341 Lecture Notes - Lecture 2: Financial Statement, Weighted Arithmetic Mean, Proxy Fight

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16 Dec 2017
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## Document Summary

Stock basics: ownership of a corporation is divided into shares of stocks, public corporations" shares trade on a stock market that provides liquidity for a company"s shares and determines market price for those shares. Common stock : shareholder voting : straight voting each shareholder has as many votes for each director as shares held. Number of directors x shares held = number of shares you have eg. if someone has 600 shares and the other 400, then the one with 400 will lose every vote and have no representation on the board. You use all your votes on 1 director: cumulative voting each shareholder"s total vote allocation for all directors is equal to number of open spots multiplied by his/her number of shares. Board of directors decides timing and amount of each dividend, and are paid in proportion to the number of shares they own if company is liquidated through bankruptcy and assets are leftover, shareholders divide remaining assets proportionally.

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