ADM 2341 Chapter Notes -Secondary Market, W. M. Keck Observatory, Financial Statement
5 Dec 2014
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Describe the process whereby the owners control the firm"s management. The owners of a corporation are the shareholders; the people who have invested in the stocks or shares of the corporation. When a person hires a stock broker to buy shares for a specific corporation, the stock broker goes to the stock market; the new york stock exchange or the. Nasdaq for example; and buys the stock for the person. Once the shares have been purchased, the person who bought them becomes a shareholder and now owns a small portion of the corporation. Once a person becomes a shareholder; depending on the type of share they purchased; they are able to indirectly take part of the decisions of the corporation. A shareholder does this by electing a board of directors. The boards of directors are the middle man between the corporation and the shareholders.
