ACCT207 Chapter Notes - Chapter 11: Legal Personality, Treasury Stock, Stock Certificate
13 May 2016
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Corporations can be classified by purpose or by ownership: purpose segregates for profit from nonprofit, by ownership differentiates publicly held and privately held corporations. Publicly held corporations may have thousands of stockholders, and its stock is traded on a national securities market such as the new york stock. A privately held corporation, a. k. a. a closely held corporation, usually has only a few stockholders and does not offer its stock for sale to the general public. Privately held companies are generally much smaller than publically held companies, though some notable exceptions exist. Characteristics of a corporation: separate legal existence. Corporations act under their own name rather than in the name of its stockholders. Ex: facebook can sue or be sued for something it would not be mark. Corporate owners (stockholders) do not bind the corporation unless such owners are agents of the corporation.
