Session 14: Equity Analysis and Valuation
Reading 58: Overview of Equity Securities
LOS d: Discuss the differences in voting rights and other ownership characteristics among various equity classes.
Johnson Company shuts down and is liquidated. Bob Smith owns 100 common shares of Johnson, but has a lower priority of claims than Al Jones, who also owns 100 common shares. Smith most likely owns:
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A) |
non-participating shares. | |
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C) |
non-cumulative shares. | |
Some firms have different classes of common stock (e.g., Class A and Class B shares). These classes may be distinguished by factors such as voting rights and priority in the event of liquidation. Participating and non-participating, cumulative and non-cumulative refer to characteristics of preferred stock.
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发表于 2011-3-30 11:16
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