UGBA 175 Lecture Notes - Lecture 24: Authorised Capital, Preferred Stock, Treasury Stock

• School: Berkeley
• Department: Business Administration Undergraduate Program
• Course: UGBA 175
• Professor: Alan Ross Alan

Document Summary

You get stock options (cid:523)if the company does well, you"re in(cid:524) Promoter signs himself (cid:523)or with (cid:498)on behalf of(cid:499) corporation to be formed(cid:524) > Enter into many contracts (employees, clients, subscribers, suppliers, Need novation for promoter to be released. Write in that other party and corporation would release me from liability landlord) liable upon the formation of the corporation. Owes a fiduciary duty (disclose if you own building) The state can go after you for issues. But you cannot form a defective corporation and say you cannot sue us > Court use this to do justice, not let you walk away and avoid liability (prevent fraud) Loan (loan company money) and company pays you interest. Preferred stock is similar to bonds: only get dividends (much like interest) and is tied to inflation. Maturity is the time when you get back your principal (you have been collecting interest all those years) Stockholders vote through proxy to elect a board.