Features of a publicly traded company
A publicly traded company, in essence, is a company that that trades its stocks in the public market. Examples of the public market are the stock exchange and over the counter market. A publicly traded company is also known as a public company. In a public company, the shares and stocks are not limited to a particular group of people; the stocks can be bought by anyone from the public. A public company is however required to have a minimum of two directors and an unlimited number of shareholders; in addition, this company should have a minimum share capital. Such companies can easily raise more capital when compared to private companies since they can legally offer liquidity to the shareholders. These companies, nevertheless, have to abide to strict Securities Exchange Commission regulations and have to give clear and accurate data to the investors.
Publicly traded companies also have to provide all information to the public without bias be issuing their prospectus the number of times the law requires them to. A public company is also its own legal entity meaning that the company and the owners are legally two separate things. Therefore, the company’s existence does not depend on the owners or directors. In these types of companies, the people with the highest number of shares and stocks are the ones who have the most say in deciding the company’s policies. These policies are generated at least once a year in their annual general meeting. One good thing about public companies is that it has limited liability; therefore, in the case of losses or erroneous activities, it is the firm and not the shareholders that will be held responsible of its actions. The shareholders do not run the company in essence; however, the major shareholders meet regularly and choose the managerial staff that will run the company. The management staffs are accountable for the day-to-day running of the company and are answerable to the shareholders. It is therefore clear that the effect of the shareholders, apart from the investments they make, is indirect to the running of the company. Overall, profits in the form of dividends are shared among the people who have bought the company’s share from the stock exchange where the company is listed.
Public companies have mission and visions which primarily guide their objectivity, it is therefore required that the functioning of the company is geared towards achieving the goals set, which should be reflected on their annual reports. In this case, we are going to look at the annual report of a publicly traded company known as Baltic Trading. We are going to see how the company faired in the year 2010 with respect to a certain number of things, among them; how the company conformed to its mission and vision statement and the relationship between the company’s strategic outline and its goals.
Assessment of Baltic Trading
Baltic Trading is a baby company of Genco Shipping and Trading Limited that deals in the transportation of dry bulk in the spot market. The company owns a number of vessels, which ship dry bulk such as coal, iron ore, steel and grain along the universal shipping routes. The company owns nine shipping vessels. The vessels consist of three Handy sizes, two Capsize and three Supramax vessels. The vessels have an average carrying capacity of 672,000 DWT per trip.
Baltic trading is listed in the New York Stock Exchange. Its last share price recorded in the New York Stock Exchange in year 2010 was $4.39. At the end of that year, it also had a common stock volume of 47, 536 shares in the stock market. In the year 2010, Baltic Trading announced its financial results in three quarters, parallel to its parent company, Baltic Shipping and Trading Limited.
Baltic Trading was formed with a certain clearly stated mission and vision in mind. The vision was “to offer the financial community an opportunity to invest in a dry bulk shipping...
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