BUSN 70 Lecture Notes - Lecture 6: Privately Held Company, Initial Public Offering
13 Mar 2021
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Document Summary
A legal entity, created by the state, whose assets and liabilities are separate from its owners. Has many of the rights, duties and powers of a person. Can sue and be sued in court. Account for the majority of all u. s. sales and income. Corporations are typically owned by many individuals and organizations who own shares of the business. Shares of the corporation that may be bought or sold. You are owner in company - pieces of corporation. Profits of a corporation that are distributed in the form of cash payments to the stockholders. Write you check for profits from shares that you own. Can raise shareholder value when company goes out to market and repurchase stocks (legal but just have to file documents) Whisper to the market that they think their stock is undervalued. Companies can also issue new stocks to raise money. Following state procedure of chartering the corporation (can be done in other.
