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Shareholders

• The true owners of the firm by virtue of their equity in the form of preferred and common stock.

 
 Embedded terms in definition
 Common stock
Equity
Firm
Stock
 
 Referenced Terms
 Agency costs: The incremental costs of having an agent make decisions for a principal.Costs borne by Shareholders to prevent or minimize agency problems and to contribute to the maximization of the owners' wealth. They include monitoring and bonding expenditures, opportunity costs, and structuring expenditures.

 American depositary receipt: Is an instrument which is issued in the United States but based on foreign securities. This security facilitates trading and investment because it is quoted in terms of the U.S. Dollar. This compares to the initial situation of the underlying shares quoted and traded in currencies other than the U. S. dollar.Abbreviated ADR or ADRS. Certificates issued by a U.S. depositary bank, representing foreign shares held by the bank, usually by a branch or correspondent in the country of issue. One ADR may represent a portion of a foreign share, one share or a bundle of shares of a foreign corporation. If the ADR's are sponsored, the corporation provides financial information and other assistance to the bank and may subsidize the administration of the ADRs. Unsponsored ADRs do not receive such assistance. ADRs carry the same currency, political and economic risks as the underlying foreign share; the prices of the two, adjusted for the SDR/ordinary ratio, are kept essentially identical by arbitrage. American depositary shares (ADSs) are a similar form of certification.Claims issued by U.S. banks representing ownership of shares of a foreign company's stock held on deposit by the U.S. bank in the foreign market and issued in dollars to U.S. investors.A negotiable certificate representing a given number of shares of stock in a foreign corporation; it is bought and sold in the American securities markets, just as stock is traded. ADRs are issued by a U.S. bank, consisting of a bundle of shares of a foreign corporation that are being held in custody overseas. ADRs can be sponsored, which means the corporation provides financial and other information to the bank, or unsponsored. While ADRs have the same currency and economic risks as the underlying foreign shares, they are much more convenient for U.S. Shareholders to own since there are no problems in transferring securities from a foreign country or currency conversion.

 Annual fund operating expenses: For investment companies, the management fee and other expenses, including the expenses for maintaining shareholder records, providing Shareholders with financial statements, and providing custodial and accounting services. For 12b-1 funds, selling and marketing costs are included.

 Annual report: A corporations's annual statement of financial operations, typically a glossy, colorful publication. Annual reports include a balance sheet, income statement, auditor's report and description of a company's operations. The Securities and Exchange Commission requires that publicly-traded companies file an annual report, called a Form 10-K, with the Commission. The 10-K contains more detailed financial information than many annual reports.Is the yearly statement of financial condition for a financial organization. It includes balance sheet and income statement items. It may also include a descriptive synopsis of organizational highlights.Yearly record of a publicly held company's financial condition. It includes a description of the firm's operations, its balance sheet and income statement. SEC rules require that it be distributed to all Shareholders. A more detailed version is called a 10-K.The report that corporations must provide to common Shareholders that summarizes and documents the firm's financial activities during the past year.

 Annual report: A corporations's annual statement of financial operations, typically a glossy, colorful publication. Annual reports include a balance sheet, income statement, auditor's report and description of a company's operations. The Securities and Exchange Commission requires that publicly-traded companies file an annual report, called a Form 10-K, with the Commission. The 10-K contains more detailed financial information than many annual reports.Is the yearly statement of financial condition for a financial organization. It includes balance sheet and income statement items. It may also include a descriptive synopsis of organizational highlights.Yearly record of a publicly held company's financial condition. It includes a description of the firm's operations, its balance sheet and income statement. SEC rules require that it be distributed to all Shareholders. A more detailed version is called a 10-K.The report that corporations must provide to common Shareholders that summarizes and documents the firm's financial activities during the past year.

 
 Related Terms
 Letter to shareholders

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