Questions on Finance

1. Discuss the nature of stock as an investment. Do most stockholders play large roles in the management of the firms in which they invest? Why or Why not?

3.) If the companies sales are down, people that work for the company would suffer.

Match each of the definitions in #1-5 with one of the following Business Organization structures:

response so that it is easy to make comparisons among the six forms of organization. You

5. Should the company seriously consider any other options besides doing a spin-off or issuing targeted stock?

factors would reveal the true essence of an organization and how an organization should function

The OTCBB is an electronic citation framework that shows ongoing quotes, deal costs, and volume data for a huge number of over-the-counter securities that are not recorded on the NASDAQ or the NYSE. Organizations who open up to the world on the OTCBB must stick to the Sarbanes-Oxley Bill, and they should be inspected on a yearly premise. All in all, stocks that exchange on the OTCBB are ordinarily penny stocks and the offer/ask spread can be very fast due to the low volume.

33. Which ONE of the following statements is true about secondary markets in the United States?

costs, assets, the interest rate, and the tax rate would all remain constant, by how much would

The New York Stock Exchange traces its origin back 200 years. Centuries of growth and innovation the NYSE remains the world's foremost securities marketplace. Over the years its commitment to investors has been unwavering and its persistent application of the latest technology has allowed it to maintain a level of market quality and service that is unparalleled. The NYSE has grown to become the global marketplace of today.

An organizational structure is the outline of a company’s framework and guidelines for managing business operations. An organization 's structure and its degree of centralization or decentralization depend on a number of factors, including the size of the organization and its geographic dispersion. In a very large and diversified organization, it is unlikely that a handful of people will possess all the resources to achieve all goals and objectives of the enterprise. As a result, it becomes impractical to concentrate power and decision-making authority at the top. Similarly in a geographically-dispersed organization, a centralized approach will not be the most efficient, as the people with the most authority will be unable to directly supervise operations on a day-to-day basis.

The Stock Market is an organized market for the trading of stocks and bonds. In Europe a stock exchange is often called a bourse. Stock exchanges exist in all-important financial centers of the world. Members of an exchange buy and sell for themselves or for others, charging commissions. A stock may be traded only if it is listed on an exchange after having met certain requirements. The New York Stock Exchange (founded 1790) is the largest in the U.S., handling more than 70% (in market value) of all transactions. The American Stock Exchange (Amex), also in New York City, and regional exchanges account for the remainder. Unlisted shares, often of smaller companies, are traded in the growing over-the-counter

The New York Stock Exchange is an auction market, and it has a physical location.

Nevertheless if companies operate in weak markets and fail to create growth and profit the concept of maximization of shareholder wealth is also an opportunity for self-regulation and security against threats for a company. This approach is in particular useful for safeguarding against difficulties arising from wrong or misguided leadership within a corporation. Shareholders of a company have the strongest interest in a company’s success because they often invest a lot of capital in the business and require revenues for their deposit (Moore, 2002). As a matter of fact, they become more

Q3. Does the company have any other sources that it could use to raise the funds it requires? Explain. (In your answer consider the amount required and the purpose of the funds). In which market can these funds be sourced from?