In what way does a proxy give significant power to a corporation’s management? A proxy is a combination absentee ballot and assignment of vote. Proxies…

Is there any advantage to having preemptive rights as a stockholder? Is there any disadvantage? There are two advantages to a corporation’s stockholders of having…

If a stockholder could literally inspect the company’s books, a company’s competitors could buy a few shares and use their new relationship as a stockholder…

When would a stockholder be willing to purchase a class of common stock that did not have full shareholders’ rights? Not all shareholders’ rights are…

Why is preferred stock often called a hybrid between bonds and common stock? Preferred stock is often considered a hybrid between bonds and common stock…

Is there any difference in value between cumulative and non-cumulative preferred stock? Why, or why not? While the difference is minimal in financially healthy companies,…

Companies issue warrants for at least three reasons: (1) as the mechanism for conveying preemptive rights to their shareholders (“stock subscription warrants”),(2) as incentive compensation…

Companies issue convertible bonds for at least four reasons:(1) to minimize the interest rate on their debt since the conversion feature forms part of the…

What is the relationship of a warrant and a convertible bond to a call option? Both a warrant and a convertible bond contain a call…

Under what circumstances can a company successfully force conversion of a convertible bond? Under what circumstances will the company fail? Since holders of convertible bonds…