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1) options are posion pill, preemptive right, corporate charter, proxy 2) takeover, proxy, poison pill, dilution 3) preemptive right, posion pill, purchase protection, proxy Larry
1) options are posion pill, preemptive right, corporate charter, proxy
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 cutstanding. Currently, the company's stock is valued at $45,00 per share. The company needs to ralse new capital to invest in its future production activities, The company is anticipating issuing 5,000 new shares at a price of $36.00 per share. Larry worries about the value of his investment. Larry's current investment in the compary 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 2) takeover, proxy, poison pill, dilution
3) preemptive right, posion pill, purchase protection, proxy
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