BU283 Chapter Notes - Chapter 8: Capital Asset Pricing Model, Dividend Yield, Initial Public Offering
Document Summary
Bu283 chapter 8: share valuation and market efficiency. Shares (stocks): securities that represent ownership in an incorporated company. Represent equity or ownership in a company so a shareholder/stockholder is a part owner of the company. Shareholders entitled to control corporation and share company"s profits; exercise control through right to vote. Shareholders attend annual general meeting, where they receive annual financial statements, vote on special resolutions, and elect members to the board of directors. Public company: company that sells shares of stock to the public and whose shares are traded on a public exchange. Private company: company where ownership and shares are held by a limited number of stockholders and whose shares are not available to the public. Shares aren"t actively traded and aren"t listed on an exchange. Primary market: market where securities are traded for the first time and where initial offerings to the public are made.
