Random Investor and Security Ownership

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• Explain how investors report investments in equity securitie

  When the investor controls another corporation, apart from the investee corporation through ownership of a majority (more than fifty percent ownership), the investor must report equity security investments by consolidation of financial statements, as

• Classification of investmetns in financial statements

  The decision on whether to invest in a debt or equity security would depend on the intention of the investor. If it wants to participate in the operations of the investee, then it should purchase equity security, otherwise a debt security.

• Venture capital funding

  In contrast, the face value of a security with warrants is repaid,and the investor has the right to receive common stock shares by remitting the warrants. Redeemable preferred stock is typically straight prefferd with no conversion privileges.

• Financial Management: Define terms and their roles in finance

  Represents a portion of ownership in an corporation ? Represents a claim on the corporation's assets, subordinated to other form of capital. Bond ? An example of a financial security ? Investor loans money to an entity ?

• Define basic financial terminology

  Security: An instrument representing ownership (stocks), a debt agreement (bonds) or the rights to ownership (derivatives). A security is essentially a contract that can be assigned a value and traded.

• Investment Activities and Income

  Held to maturity are debt security investments which the investor company intends to hold until the security matures. For this type of investment, marking to market is not a generally accepted accounting principle.

• Describe how a merge occurs with in the USA and China.

  It will be mandatory for the U.S. company to first file a Form 8-K and if the Chinese investor is acquiring ownership interest that exceeds five percent, the Chinese investor will be required to file a beneficial ownership report.

• Similarities and differences between convertible debt

  (http://www.investopedia.com/terms/w/warrant.asp) Convertible debt is a security which can be exchanged for a specified amount of another, related security, at the option of the issuer and/or the holder.

• Common terms in finance defined

  Stock - A type of security that signifies ownership in a company and represents a claim on part of the company's assets and earnings. Its role in finance is to determine ownership.