voting control of corporations based on stock ownership

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• LLC Documents, Tax, Section 351, Stocks

  Control is defined as the ownership of 80 percent or more of a corporation's voting stock. C.

• Who are the true owners of a corporation? What are the three types of securities issued by a corporation? What is the difference between preferred stock and common stock?

  - known as redemption rights - The right to convert to common stock based on a formula - Protection against certain stock splits, stock dividends, and future cheap issuances of stock ?

• Explain financial leverage, tax implications of debt

  As the preference shares do not carry any voting rights, their issue does not dilute the ownership control of the existing common stock holders.

• the reasons companies choose to offer Preferred Stock

  Other facts about Preferred Shares: Like common stock, preferred stock represents some degree of ownership in a company but usually doesn't have the same voting rights.

• Cost and equity methods

  is the accounting of investment in which value of each stock/share is counted based on the book value of the stock as reported by the investee corporation.

• Taxation: Angela owns all the stock of A, B, and P Corporations

  ) The controlled group is A, B, and P, according to IRC sec 1563(a)-2,which states that a brother-sister control group consist of two or more corporations if 5 or fewer persons who are individuals, estate or trust owned 50% of the voting stock of all

• Compare bonds to stocks in terms of raising capital

  Dilution: Issuing bonds will not dilute stock ownership percentage, voting control, value of individual shares, and EPS (Earnings per share) by the stockholders. Issuing stocks will decrease stock ownership, voting control, and EPS.

• Earnings accumulation tax assessed against Able and Baker

  or 80% of its voting stock (www.gotosp.com).

• Managerial Capitalism

  The theory is based on the transition from ownership by individual capitalists to joint-stock ownership of enterprises and on the new role of managerial and organizational sciences in capitalist production.