BU393 Chapter Notes - Chapter 15: Subordinated Debt, Cash Flow, Internal Financing
Document Summary
Common stock is stock that has no special preference either in dividends or in bankruptcy. Owners of common stock in a corporation are referred to as shareholders or stockholders they receive stock certificates for the shares they own. Shares of common stock are the fundamental ownership units of the corporation. Cumulative voting a procedure whereby a shareholder may cast all of his votes for one member of the board of directors. Straight voting a shareholder may cast all of his or her votes for each candidate for the bod. Proxy a grant of authority by the shareholder to transfer his voting rights to someone else. Securities issued by corporations may be classified roughly as equity or debt. When corporations borrow, they contract to make regularly scheduled interest payments and to repay the original amount borrowed. Bonds can be repaid at maturity or earlier through the use of a sinking fund.
