Loyalty & Due care
What is the Fairness Rule?
They must not exploit their positions for personal gain at the expense of the corporation.
How many rights do shareholders have?
7
What are the directors who also are officers of corporation?
Inside Directors
Stockholders directly control the business
Common stock
What rule presumes that the decisions of the corporate directors and officers are legal?
Business Judgment Rule
What is a dividend?
Profits distributed to shareholders
What is a board?
A group of individuals elected to represent shareholders or to make decisions on bigger company issues?
what is preferred stock?
Preferred stockholders do not have an ownership interest in the firm
What is insider trading?
The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.
Name a type of records shareholder has a right to see?
List of shareholders, an accounting of all transactions, and the minutes of all directors’ meetings.
What is the differnce between Outside Directors and Inside Directors.
Inside Directors
The directors who also are officers of corporation
Outside Directors
The directors who do not hold management positions at the corporation
What is it when a buyer acquires a target company's stock?
Stock acquisition
Give an example of insider trading. (Some cases you know)
Martha Stewert
What are the 7 rights of shareholders?
Receive a stock certificate
Receive dividends
Examine corporate books and records
Transfer all shares
Maintain a proportionate share of stock
Exercise a vote for each share of stock owned
Sue
What is the Enron Scandal?
The Enron Scandal surfaced in October 2001 when it was revealed that America's seventh largest company was involved in corporate corruption and accounting fraud. ... ENRON shareholders lost $74 billion leading up to its bankruptcy, and its employees lost their jobs and billions in pension benefits.
True or false
Asset Acquisition is is the purchase of a company by buying its assets instead of its stock.
True