REPORTS TO STOCKHOLDERS.
Abstract There are many questions asked related to information reported to stockholders. There is no generally accepted answer to these questions. Activity on the part of the United States Securities and Exchange Commission in promulgating rules for registration of new issues and for permanent registration of "listed" securities is directing attention to this vital question. Stockholders may be divided into two classes: "controlling" and "investing." Controlling stockholders are in a position to know what is happening. Such stockholders combine personal ability and judgment with their capital investment, thereby becoming entrepreneurs. Other stockholders are more nearly pure investors though legally they are owners. They possess the legal right to vote on certain matters, but practically, theirs is solely a function of the decision to "buy, hold, or sell." In order to make a sound decision to buy, hold, or sell, an investor must have a comprehensive knowledge of the forces at work tending to expand or contract general business. He needs to have an opinion also of the trend of interest rates.
- DOI
- 10.2308/tar-7067480
- Volume
- 10 (1)
- Pages
- 77-83
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref