Business
Business, 12.08.2020 05:01, fbr45508

Larry Nelson holds 1,000 shares of General Electric common stock. The annual shareholders meeting is being held soon, but as a minor shareholder, Larry doesn’t plan to attend. Larry did not sell his shares but gave his voting rights to the management group running GE. Larry must have signed a that gives the management group control over his shares. Larry also holds 2,000 shares of common stock in a company that only has 20,000 shares outstanding. Currently, the company’s stock is valued at $43.00 per share. The company needs to raise new capital to invest in its future production activities. The company is anticipating issuing 5,000 new shares at a price of $34.40 per share. Larry worries about the value of his investment. Larry’s current investment in the company is worth $ . If the company issues its new shares and Larry makes no additional investments in the company, then his investment will be worth $ . This scenario is an example of . Larry could be protected if the firm’s corporate charter includes a provision. If Larry exercises the provisions in the corporate charter to protect his stake, his investment value in the firm will become

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Larry Nelson holds 1,000 shares of General Electric common stock. The annual shareholders meeting is...

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