You found a bunch of printed shares of a corporation whose shares are traded in Borsa İstanbul at your father’s suitcase. Your father told you that you can do whatever you like with those printed shares. You decided to sell the shares. You submitted the printed shares to the brokerage house (investment firm) and they told you that they cannot sell those printed shares.
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You found a bunch of printed shares of a corporation whose shares are traded in Borsa İstanbul at your father’s suitcase. Your father told you that you can do whatever you like with those printed shares. You decided to sell the shares. You submitted the printed shares to the brokerage house (investment firm) and they told you that they cannot sell those printed shares. Are they correct, why? If not, why?
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- You are an accounting student at your local university. Your brother has recently managed to save $5,000, and he would like to invest some of this money in the stock market, so hes researching various global corporations that are listed on the stock exchange. He is reviewing a company that has Goodwill as an item on the balance sheet. He is quite perplexed about what this means, so he asks you for help, knowing that you are taking accounting classes. How would you explain the concept of goodwill to him by comparing it to other types of resources the company has available?Suppose you were a CPA and you had invested in IBM when IBM was not one of your firm's clients. Two years later, after IBM's stock price had fallen considerably, your firm won the IBM audit contract. You will be involved in working with the IBM audit. You know that your firm's rules require that you sell your shares immediately. If you do sell immediately, you will sustain a large loss. Do you think this is fair? What would you do?Mr. Daniel has preferred shares in ABC Corporation. The Board of Directors of ABC is thinking of selling substantially all of the company’s assets. A meeting was called to vote on said matter. Mr. Daniel is thinking if he can vote on the said meeting. He comes to you, his bright accountant, for advice, what would be your answer to him? pls help me, thank you
- Which of the following is a primary market transaction? You sell 200 shares of Johnson & Johnson stock on the NYSE through your broker. Johnson & Johnson issues 2,000,000 shares of new stock and sells them to the public through an investment banker. You buy 200 shares of Johnson & Johnson stock from your younger brother. You just give him cash and he gives you the stock¾the trade is not made through a broker. One financial institution buys 200,000 shares of Johnson & Johnson stock from another institution. An investment banker arranges the transaction. You invest $10,000 in a mutual fund, which then uses the money to buy $10,000 of Johnson & Johnson shares on the NYSE.Jamie Lee’s father suggested that they purchase stock in a company that he has held shares in for decades. They want to take advantage of the stock tip, but Jamie Lee and Ross are trying to decide between purchasing the company’s common stock and preferred stock. What are the advantages to each type of stock?You are offered a job you know that accepting this job may eventually lead to a promotion into the role of the financial manager. As the potential financial manager, what federal and shareholder requirements would you need to be familiar with in order to ensure that you are being completely compliant? While investigating the shares offered to you by your potential boss, you discover that the company you are considering working for is not registered as required under the Securities Act of 1933. How does this influence you as a potential employee and as a potential shareholder relative to any applicable statutes or laws?
- You have been hired as a financial consultant by Himalaya Ltd. The CEO, Ms. Natasha Romanoff has just returned from a conference of top managers, held at a prestigious University in Australia where the issue of share buy-backs, dividends, and earnings per share (EPS) were debated. She was particularly puzzled after hearing the quote below: Share buybacks (repurchases) are going into the market and pumping up the price of your shares by using your own cash, not to invest in business. - (Elizabeth Warren, U.S. Senator,2021)Required:In light of the above statement write a short memorandum format report to the CEO, Natasha Romanoff to answer the following four questions raised by Ms. Romanoff.i. Discuss what dividends, EPS and share buybacks are?ii. Discuss at least TWO reasons why companies pay dividends to shareholders?iii. Based on the statement above by Elizabeth Warren (U.S. Senator) criticallyevaluate why companies may consider buying back its own shares. iv. Discuss at least TWO…Tristan is thinking about purchasing stock in a corporation. Specifically, Tristan has asked you to explain to him what the terms'membership' and'shareholdership' represent, as well as the many methods in which someone might become a member of the organization. He also wants you to clarify who would be qualified to become a member, as well as how many members a corporation is allowed to have. Finally, Tristan inquires as to how a person might become no longer a member of a corporation.Investors generally can make one vote for each share of stock they hold. TIAA-CREF is the largest institutional shareholder in the United States; therefore, it holds many shares and has more votes than any other organization. Traditionally, this fund has acted as a passive investor, just going along with management. However, in 1993, it mailed a notice to all 1,500 companies whose stocks it held that henceforth it planned to actively intervene if, in its opinion, management was not performing well. Its goal was to improve corporate performance to boost the prices of the stocks it held. It also wanted to encourage corporate boards to appoint a majority of independent (outside) directors, and it stated that it would vote against any directors of firms that “don’t have an effective, independent board that can challenge the CEO.” In the past, TIAA-CREF responded to poor performance by “voting with its feet,” which means selling stocks that were not doing well. However, by 1993, that…
- Jack is considering incorporating and asks for advice. Which of the following is not a major concern he should worry about? selection of the corporation's name colors for his business logo which state to incorporate his business the number of stock shares he should authorizeA real person (Ahmet) owns some shares of a publicly traded company (Asia AŞ). Ahmet wants to make a public offer of the shares he possesses. For Ahmet and Asia A.Ş., which one is the issuer and which one is the public offerer? Explain.If a person inherited $100,000 and decided to buy stock in a new venture through a private placement, how would Regulation D affect this investor? How has crowdfunding changed the landscape of new-venture financing? Some entrepreneurs do not like to seek new-venture financing because they feel that venture capitalists are greedy. In your opinion, is this true? Do these capitalists want too much?