RSM221H1 Study Guide - Midterm Guide: Quick Ratio, Tuff, Share Repurchase
Document Summary
Strategy management long term investment for a company. Ra (greater of faire value and value you use ) Shares can be put into classes, every share have to be equal within class. 4. preemptive right if the company is generating new share, the exiting shareholders have the right to buy new shares before the public could buy [ . Advantage: share easy to transfer, could see any time/price common shareholders, preferred shareholder. Ps don"t bear the same risk rate as cs. Cs are the real owner of the company. Common share [carry the risks and rewards of ownership] Suffer ultimate risks of losses/ benefit of success. Right to management through the voting right. Get dividends/claim to assets on dissolution before common shareholders. Not guarantee to get the amount/portion dividend but once the company issue dividend, ps got it before cs. Convertible: may exchange ps to cs at a ratio. Callable/ redeemable: corp. can repurchase the share from ps /option for.
