RSM230H1 Lecture Notes - Lecture 7: Canada Business Corporations Act, Ticker Symbol, Price–Earnings Ratio
26 Nov 2016
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It is unlikely for human populations to triple (growth will be slow) Long-term, there is no better investment than stocks. Once we have directors, to make sure that the managers will share the inside information to the directors. Owners now have the right to vote for directors. Limited liability: socialize losses, the investors only lose as much as they invest in, problem people thought that directors and managers will take out more bad risk taking. However, once owners do(cid:374)"t ha(cid:448)e i(cid:374)for(cid:373)atio(cid:374) on the inside dealings of directors and managers. We need to give protection for owners to let them be able to invest: directors and managers are not protected by limited liability. Different classes of shares common shares or preferred shares (voting & non-voting: right of any class of shareholders depend on the articles of incorporation and the terms under which the shares are issued. In hk, there is only one vote per share regulation.
