Public Company
How to Issue Shares
The Companies Act and its own constitution bind a company when it comes to matters related to managing its affairs. A company’s board of directors possesses the power of issuing shares. However, these powers are restricted to the proviso of the Companies [read more...]
All About Insider Trading
Insider trading is the trading of a company’s shares by people who work for the company, such as senior level executives, directors and those who own more than 10% of the total shares. Insider trading is illegal since the trading is based on some privile [read more...]
Understanding The Need For Proxy Voting
A proxy is an agent legally authorized to act on behalf of someone else. When shareholders are unable to attend corporate meetings they can still cast their votes by using a proxy, who votes on their behalf. In order to do this the proxy needs to produce a pow [read more...]
Categorizing Dividends According To Types
Dividends are a portion of the company’s earnings to be distributed to its shareholders, based on the board of directors’ decision. Dividends are quoted as Dividend Per Share (DPS) or dividend yield. Most companies having stable and secure growth o [read more...]
Understanding Mergers, Acquisitions, and Spinoffs
Mergers, acquisitions and spin-offs are part of the corporate restructuring strategy in which big and small companies indulge in today’s corporate world. These are also called consolidation activities. Companies pursue consolidation activities to strengt [read more...]
How To Conduct A Shareholder Meeting
A Shareholder Meeting is presided over by the Chairman. The Chairman has the responsibility of coordinating the meeting unless the Chairman assigns this responsibility to someone else. Below is a list of formalities that must be followed at a shareholder meeti [read more...]
What To Know Before Doing After Hours Trading
After Hours Trading or AHT is the trading of securities on big exchanges after the normal trading time is over. After hours trading, which used to be the privilege of institutional investors is now available for every one. The advent of electronic communicatio [read more...]
Categorizing Stocks According to Types
Choosing a stock while making an investment decision depends upon your financial goals. Corporations issue different types of stocks, the basic two types being common stock and preferred stock. Another type of classification, commonly used is to classify stock [read more...]
Understanding Convertible And Reverse Convertible Bonds
The issuer or buyer issues bonds to the creditor. If the market value of the collateral or amount of the bond increases, then the value of the convertible bond also goes up. If the value of the material on which the bond has been issued decreases, the bond wil [read more...]
Weighing The High Risks And High Returns Of Junk Bonds
Junk bonds are similar to regular bonds. They are IOUs from an organization or corporation, which specify the principal amount it shall pay back. The date on which this payment of principal will be made is known as the date of maturity. The interest amount to [read more...]
