FAQs tagged as

Corporate Governance

  1. What is the difference between redemption of shares and repurchase of shares?

  2. What is the difference between a stock buyback and management buyout?

  3. Do ETFs have a board of directors?

  4. Does a company have to notify its investors when it faces legal proceedings?

  5. What protects an investor’s interest in the case of terrorist sabotage, or act of war that destroys the electronic record of stock ownership?

  6. Why do companies use reverse/forward stock splits?

  7. Does a shareholder lose all of their equity once a Chapter 11 bankruptcy is filed by the company?

  8. What is pension maximization?

  9. Where can I find a company's stance on the environment?

  10. What is the difference between a shareholder and a stakeholder?

  11. Why did Tyco's financial statements attract the SEC's attention in 2002?

  12. What is a vest fleece?

  13. I am retiree, drawing from my 403(b) annuity. I am the sole employee of my own business. Do I qualify for a SIMPLE IRA account? I want to defer some of my income from taxes.

  14. How can I sell private company stock?

  15. How do proxy fights work?

  16. I have a small business, and I'm considering setting up an SEP IRA. What are leased employees? Does this term refer to outside contractors who receive 1099-Rs? If so, how would the 5305-SEP need to be worded to make it acceptable to the IRS?

  17. Can a corporation deduct dividend payments to shareholders before taxes are calculated?

  18. If an employee covered by a SIMPLE leaves his employer within the two-year period and his new employer doesn't have a SIMPLE, what happens to the plan? Can the employee roll it over without penalty, or keep it at the old company until the two years expire

  19. How do you get a hard copy of a stock certificate?

  20. To whom was the term "corporate kleptocracy" first applied?

  21. What are the sources of funding available for companies?

  22. Can an employer adopt a different type of retirement plan for each employee?

  23. Why would a multinational corporation conduct a vertical foreign direct investment?

  24. If I own a stock in a company, do I get a say in the company's operations?

  25. Do convertible bonds have voting rights?

  26. If a company undergoes an acquisition can an employee withdraw 401(k) funds tax free?

  27. What is a "gypsy swap"?

  28. Who is responsible for protecting and managing shareholders' interests?

  29. If an employee is paid by commission, who is responsible for withholding taxes?

  30. What is a treasury stock?

  31. What is a staggered board?

  32. How can unethical executives use options backdating to evade taxes?

  33. What is a blackout period?

  34. If a stock is delisted, do shareholders still own the stock?

  35. How does privatization affect a company's shareholders?

  36. Can I still set up an SEP if one of my employees refuses to participate?

  37. What does a Chief Financial Officer (CFO) do?

  38. What is the difference between a merger and a takeover?

  39. What is a pure play?

  40. What is the short/current long-term debt account on a company's balance sheet?

  41. I lost my share certificate. Do I still own the stock?

  42. What is the investor rights movement?

  43. Is a Canadian resident allowed to participate in a direct stock purchase plan from a U.S. company such as Pfizer?

  44. A company I recently looked up showed institutional holdings of more than 100%. How is this possible?

  45. What is the difference between a president and a chief executive officer? Can there be more than one of each?

  46. Is an employee eligible for an SEP if the plan has already been set up for other employees?

  47. I've noticed executives buy a lot of stock below market value, and then they sell it for a large gain. How can they do this?

  48. A corporate bond I own has just been called by the issuer. How can a company legally take away my bond? How do these call provisions work?

  49. What is a stock-for-stock merger and how does this corporate action affect existing shareholders?

  50. How can I find out if my employer is a member of FINRA?

  51. What does the saying "What's good for Wall Street is bad for Main Street" mean?

  52. How do restricted stocks, treasury stocks and stock appreciation rights benefit employees?

  53. When would a corporation want to refinance its debt?

  54. Why would a company have multiple share classes, and what are super voting shares?

  55. Since stockholders are entitled to a company's assets and earnings, can a stockholder realize profits without selling stocks?

  56. I have a KSOP through my employer that I've invested 100% in company stock. I am now concerned that I'm not diversified and would like to move out of company stock and into mutual funds. Is this allowed with the funds I've contributed to the account?

  57. What happens to the voting rights on shares when the shares are used in a short sale transaction?

  58. What is an evergreen provision and how does it affect shareholders?

  59. What's the difference between a golden handshake and a golden parachute?

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