首页
外语
计算机
考研
公务员
职业资格
财经
工程
司法
医学
专升本
自考
实用职业技能
登录
外语
Stock, in business and finance, is a share of ownership in a corporation. Shares in a corporation can be bought and sold, usuall
Stock, in business and finance, is a share of ownership in a corporation. Shares in a corporation can be bought and sold, usuall
admin
2010-09-10
77
问题
Stock, in business and finance, is a share of ownership in a corporation. Shares in a corporation can be bought and sold, usually on a public stock exchange. Consequently, the owner of shares can realize a profit or capital gain if the stock is sold at a price above what the owner originally paid for it.
Some companies enable stockholders to share in the profits of the company. These payments of corporate profits to stockholders are called dividends. In addition to having a claim on company profits, stockholders are entitled to share in the sale of the company if it is dissolved. They may also vote in person or by proxy on a variety of corporate matters, including the most important matter of who should run the corporation. When the company issues new stock, stockholders have priority to buy a certain number of shares before they are offered for public sale. Stockholders also receive periodic reports, usually quarterly, that provide information regarding the corporation’s business performance. Stocks generally are negotiable, which means stockholders have the right to assign or transfer their shares to another individual.
A stockholder is considered a business owner and has the protection of limited liability under United States laws. Limited liability means that a stockholder is not personally liable for the debts of the corporation. The most a stockholder can lose if the company fails is the amount of his or her investment -- what he or she originally paid for the stock. This arrangement differs from that of other forms of business organization, which are known as sole proprietorships and partnerships. These business owners are personally liable for the debts of their businesses.
Corporations have good reasons to issue stocks. They issue stock in order to finance their business activities. This method of raising funds is only available to business firms organized as corporations; it is not available to sole proprietorships and partnerships. The corporation can use the proceeds of a stock offering in a variety of ways. Depending on the type of company, this might involve increasing research and development operations, purchasing new equipment, opening new facilities or improving old ones, or hiring new employees.
An alternative to stock financing is debt financing or the sale of bonds, an interest-bearing loan. This alternative is also available to sole proprietorships and partnerships. With the issuance of a bond a company typically promises to make periodic interest payments to the lender or bondholder as well as pay back the amount of the bond when the term of the bond comes to an end. Thus bonds are evidence of loans while stocks are evidence of ownership. Stocks and bonds are collectively known as securities.
When a corporation first makes stock available for public purchase, it works with an investment banking firm to arrange an initial public offering (IPO). The investment bank acquires the first issue of stocks from the corporation at a negotiated price, and then makes the shares available for sale to its clients and other investors.
A corporation can only have one IPO -- the first time it makes stock available to the public. After its IPO, a company is said to be public. Public corporations that need additional financing for further business development may choose to issue more stock at a later time. This is called a subsequent, or follow-on, offering.
Some corporations may choose not to go public. In this case it is said to be a privately held corporation. A corporation may elect to remain private because it docs not want to share its profits, or it may not want to give up control to shareholders.
Most of the information reported in the daily news media about the buying and selling of stock refers to transactions involving previously issued stock. The daily buying and selling of stock rarely involves IPOs. Almost all stock transactions are "second-hand transactions." The corporation that initially issued the stock is not directly involved.
A corporation’s capitalized value refers to the market value of the stock that it has issued and that remains outstanding -- that is, available for sale or purchase. A corporation’ s capitalized value may be greater or less than its book value. Book value is the value of the corporation’ s assets as reflected in its accounting statements -- that is, on its books. Capitalized value may also be greater or less than the corporation’s replacement value, the amount that it would take to replace all of the corporation’s assets.
Corporations will sometimes split their stock. This means the corporation replaces outstanding shares with new shares on some multiple basis, such as a two-for-one or three for-one split. When a corporation splits its stock, it does not obtain any new funding. Splits usually occur when the market price of shares is deemed too high by corporate management. With a split the price of shares falls, making purchase by smaller investors more affordable. Keeping a stock relatively affordable for smaller investors makes it easier for a corporation to raise money with a follow-on stock offering.
Why People Buy Stock? Economic gain represents the primary motive for the purchase of stock. The gain or return from stock consists of two parts: dividends, the periodic payments made from profits, and appreciation, the capital gain realized from selling a stock for more than its purchase price.
An investor really has only two choices in acquiring the financial assets of a corporation -- buying stocks or bonds. As a financial claim against a company, bonds take precedence over all types of stock. Thus, they are a safer investment than stocks, especially in times of deflation (a period when the prices of goods and services are generally falling). Stocks, however, are usually the better investment during periods of inflation (a period when the prices of goods and services are generally rising) because they represent ownership of assets that will probably rise in value as fast as or faster than prices in general. Bemuse the dollar value of bonds is fixed, they cannot serve as a hedge or protection against inflation as do common stocks.
In order to gains more money from its investors, a corporation may issue split stock.
选项
A、Y
B、N
C、NG
答案
B
解析
细节题。文中第11 段提到,上市公司分股时并不能得到新的资金,与题文“从投资者手里赚更多的钱,公司可以发行分股”不符。答案为[N]
转载请注明原文地址:https://kaotiyun.com/show/yP87777K
0
大学英语四级
相关试题推荐
Inrecentyears,moreandmoreforeignersareinvolvedintheteachingprogramsoftheUnitedStates.Bothoftheadvantagesand
Inrecentyears,moreandmoreforeignersareinvolvedintheteachingprogramsoftheUnitedStates.Bothoftheadvantagesand
Culturereferstothesocialheritageofapeople—thelearnedpatternsforthinking,feelingandactingthatcharacterizeapop
A、AgreaterpercentageofwomenareadvancingprofessionallyintheU.S.thanpreviously.B、Professionalmenrefusetoaccompany
A、Roaddangers.B、Salecycling.C、Localtransport.D、Cyclenetwork.A短文中明确提到Europeansareoftenastonishedattheroaddangersw
A、There’snojobavailablenow.B、Thejobhasalreadybeentakenbyothers.C、Onlygraduatestudentsarequalifiedforthejob.
A、Paris.B、Rome.C、London.D、Stockholm.B
Lowlevelsofliteracy(读写能力)andnumeracy(计算能力)haveadamagingimpactonalmosteveryaspectofadultlife.Testsandintervi
A、Bringagreatdealofusefulexperiencetotheuniversity.B、Improvehumanrelationshipsintheuniversity.C、Bringafearof
A、Thewriterenjoyssleepingverymuch.B、Thewriterdoesn’tlikemoneyatall.C、BillGatesdoesnotknowhowtoenjoyhimself.
随机试题
某女,22岁,腕、踝关节疼痛及脱发1年余,今晨郊游时发现面部出现紫红斑,遂就医。查体:头发稀疏,面颊及颈部均有不规则圆形红斑,口腔有溃疡。化验:血中查出狼疮细胞。病人返家后健康指导以下哪项不妥()
某男性,66岁,近日出现喘息、咳嗽、胸闷等症状,夜间及凌晨发作加重,呼吸较困难,并伴有哮鸣音。根据病情表现,该患者可能患有
张甲有两子张乙和张丙,因张乙和张丙在国外工作,无暇顾及张甲。张甲便与刘某签订一份遗赠扶养协议,将自己的房屋在死后赠与刘某,刘某尽生养死葬的义务。张甲在病危期间,张乙回到国内,张甲在临终前立下口头遗嘱,将其房屋由张乙继承(遗嘱符合形式要件)。张甲死亡后,王某
银行业监督管理机构的职责包括:()
关于单利和复利的区别,下列说法正确的是()。
以下哪种为社交礼仪中正确的介绍方式?()
职业是指劳动者为获得劳动报酬或收入所从事的社会劳动类别。职业具有哪些特征()。
公民年满16周岁并以自己的劳动收入为主要生活来源的,可以视为()。
CiscoPIX525防火墙可以进行操作系统映像更新的访问模式是()。
ThanksgivingDayisthemosttrulyAmericanofthenationalholidaysintheUnitedStatesandismostcloselyconnectedwiththe
最新回复
(
0
)