Preview

Goal Achievemnet in Publicly Traded Companies

Better Essays
Open Document
Open Document
2265 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Goal Achievemnet in Publicly Traded Companies
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

You May Also Find These Documents Helpful

  • Powerful Essays

    Problem Set 1

    • 1646 Words
    • 6 Pages

    Listed company is a company that has its shares listed for quotation on the Australian Securities Exchange (ASX). This means that members of the public can buy and sell shares in the company through the stock market operated by the ASX. All listed companies are public companies.…

    • 1646 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.…

    • 1260 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    The shareholders vote to elect a board of directors. It is the directors' responsibility to act in the best interest of the shareholders. To ensure that this is being upheld the board is made up of inside directors, senior executives and top shareholders, and outside directors, people not employed or involved in the organization. The board monitors the corporation creates policies and makes major decisions for the corporation. The directors create bylaws which detail the policies and the procedures of the corporation. They also appoint officers. This is usually a president, vice president, secretary etc. The officers run the day to day business procedures. The officers are actually agents of the corporation whereas the directors are…

    • 2130 Words
    • 9 Pages
    Good Essays
  • Good Essays

    Case App1

    • 734 Words
    • 3 Pages

    _Company members which does not offer or trade its company stock (shares) to the general public on the stock market exchanges, but rather the company's stock is offered, owned and traded or exchanged privately.…

    • 734 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Public companies are any company that has stock available to the public to buy. A company that wishes to set up a new business or expand its existing business can raise the capital it requires either by borrowing money or by issuing shares to investors. The investors become shareholders in the company, meaning they are part owners of the company and share in its profits and growth. These stocks represent how well the company is doing. When the accounting books are tampered with to show the company is thriving when debt is actually accumulating is when investors lose all their shares because they fall all of a sudden and lose all worth; without any warning. Companies wishing to have their shares traded must first be listed. To become listed, a company must be large enough for there to be a market in its shares and it must agree to abide by the listing rules which, with other things, require it to keep the market informed of its activities and to regularly report profits and other financial information (Flint). Auditing firms have been overlooking figures and hiding debt from the public for their high paying companies. This is where our corporations have gone astray and started to cheat their investors by deception because of conflicts of interest of the leaders of these corporations. Within these companies, employees can receive stock options with…

    • 1995 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    The shareholders are the holder of equity securities of a corporation and they can be called stockholder. The shareholders are always trying to make money, not to lose it. That’s why managers require inquiring themselves whether the planned action is legal. Also, managers need to pay attention to see if the interests of the shareholders are being served. Also, managers need follow the “Ethical Business Leader’s Decision Tree” is a very handy tool for…

    • 729 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Companies are owned by shareholders who choose Directors to give direction to the business. The Chief Executive has the responsibility of making the most important decisions. Specialist Managers will be appointed to run the company on behalf of the Board. Shareholders put funds into the company by buying shares. Every company must register with the Registrar of Companies, and must have an official address. Private companies have Ltd after their name. They are normally smaller than public companies. Shares in a private company can only be bought and sold with permission of the Board of Directors.…

    • 1594 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    Stock Market

    • 373 Words
    • 2 Pages

    A stock market or equity market is a public entity (a loose network of economic transactions, not a physical facility or discrete entity) for the trading of company stock (shares) and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.…

    • 373 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Types of Organisation

    • 268 Words
    • 2 Pages

    *Companies- A company is a legal body in its own right with an existence that is separate in law from its owners. It is owned by shareholder who appoints Director to give direction to the business. We have three types of companies. These are Limited companies, Private limited companies and Public limited.…

    • 268 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Public Sector Company

    • 448 Words
    • 2 Pages

    In spite of their name, public companies are not part of the public sector; they are a particular kind of private sector company that can offer their shares for sale to the general public, i.e. to anyone willing to buy them (as opposed to a…

    • 448 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    The Board of Directors

    • 1506 Words
    • 7 Pages

    According to Jensen (1993), the board has the final responsibility for the function of the board. The job of the board is to hire, fire and compensate the CEO and to provide high level council. More precisely, the board has two major jobs: to monitoring the decision making of management as a representative of shareholders and to initiate and implement of decisions. The board of directors is a major mechanisms used to solve agency problem, which arises when the management and ownership is separated in the company. The board of directors is an internal control mechanism to make sure the company’s decision making is align with the interest of shareholders. In US and UK, in order to improve the effectiveness of corporate governance, both internal control and external control mechanism has been applied. The active market for corporate control in these countries forces the managers to improve firm’s performance for the threat of possible takeover. This essay will describe the nature of board of directors and then evaluate whether it is effective as a corporate governance mechanism.…

    • 1506 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    Outline for a Speech

    • 43478 Words
    • 174 Pages

    To align management’s interests with those of long-term shareholders and to protect investors from misleading financial information published in public filings.…

    • 43478 Words
    • 174 Pages
    Satisfactory Essays
  • Powerful Essays

    Private Companies are companies that are either owned by non-governmental organizations or by a relatively small number of shareholders or company members which does not offer or trade its company stock (shares) to the general public on the stock market exchanges, but rather the company's stock is offered, owned and traded or exchanged privately…

    • 1616 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    According to Smith and watts (1982), even in the absence of regulation, there are private economics-based incentives for the organisation to provide credible information about its operations and performance to certain parties the organisation to avoid higher cost. The view is based on the fact that in the absence of information about the organisation’s operation, other parties including shareholders who are not involved in the management of the organisation will assume that managers might be operating the business for their own personal benefit. Furthermore, it is assumed that potential external shareholders expects to have opportunistic behaviour and in the absence of safeguards will reduce the amount they will pay the shares. The pessimistic assumption that all parties are working for the self-interest unless constrained to do otherwise, will have the effects of increasing the operating…

    • 965 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Solomon vs Solomon

    • 944 Words
    • 4 Pages

    Privately-held companies are - no surprise here - privately held. This means that, in most cases, the company is owned by the company's founders, management or a group of private investors. A public company, on the other hand, is a company that has sold a portion of itself to the public via an initial public offering of some of its stock, meaning…

    • 944 Words
    • 4 Pages
    Good Essays