Mergers, acquisitions and spin-offs are part of the corporate restructuring strategy in which big and small companies indulge in today’s corporate world. These are also called consolidation activities. Companies pursue consolidation activities to strengthen their strategic and competitive positioning.
Merger happens when a new company is formed by the combination of two separate legal entities. The […]
Dividends are a portion of the company’s earnings to be distributed to its shareholders, based on the board of directors’ decision. Dividends are quoted as Dividend Per Share (DPS) or dividend yield. Most companies having stable and secure growth offer dividends when their share prices become stagnant. However several companies do not offer dividends since […]
A proxy is an agent legally authorized to act on behalf of someone else. When shareholders are unable to attend corporate meetings they can still cast their votes by using a proxy, who votes on their behalf. In order to do this the proxy needs to produce a power of attorney document.
Generally the company sends […]
Choosing a stock while making an investment decision depends upon your financial goals. Corporations issue different types of stocks, the basic two types being common stock and preferred stock. Another type of classification, commonly used is to classify stocks as growth, value, or blue chip stocks, amongst others. It is important to understand the various […]
Shareholders can bring a proposal for certain resolutions as part of the company’s annual meeting procedures. In order to file a proposal a shareholder must own at least $2,000 worth of shares or roughly 1% of all shares in a company and own these shares for a minimum period of one year as per the […]
Insider trading is the trading of a company’s shares by people who work for the company, such as senior level executives, directors and those who own more than 10% of the total shares. Insider trading is illegal since the trading is based on some privileged information that the insider has access to, but is not […]
An initial public offering (IPO) is the initial sale of the common shares of a company or corporation to public investors. A corporation issues an IPO to raise capital. IPOs come with a host of compliance regulations and other legal requirements. The term IPO refers to only the first public issuance of a company’s shares. […]
A Shareholder Meeting is presided over by the Chairman. The Chairman has the responsibility of coordinating the meeting unless the Chairman assigns this responsibility to someone else. Below is a list of formalities that must be followed at a shareholder meeting.
1. Participants’ List: Preparing a comprehensive list of the participants of the meeting is the […]
Large companies and institutions employ teams of analysts to help invest in other companies. If they buy a particular stock, the market often expects the stock to have significant upside potential. And if they are selling the same stock, it could mean that the company, whose shares are being sold, is witnessing some difficulties.
The […]
After Hours Trading or AHT is the trading of securities on big exchanges after the normal trading time is over. After hours trading, which used to be the privilege of institutional investors is now available for every one. The advent of electronic communication networks or ECN has brought radical changes in the method of stock […]
