5章 Stocks and Their Valuation 学习课件，财务管理英文版.ppt

Topic 7(Chapter 5)part 1Stocks and Their Valuation Features of common stock Determining common stock values Efficient markets Preferred stock Facts about Common Stock Represents ownership. Ownership implies control. Stockholders elect directors. Directors hire management. Management’s goal: Maximize stock price. Legal Rights and Privileges of Common Stockholders 1.Control of the Firm It is the right to elect a firm’s directors,who,in turn,elect the officers who manage the business. 2.The Preemptive Right It is the right to purchase any additional shares sold by the firm. What’s classi