Equity ownership

Company acquisitions differ from product acquisitions in the complexity of the transaction and the separate and overlying complications associated with equity ownership which itself is usually divided amongst many shareholders with different motivations. A primary consideration in considering a company... 

A maximum of 5% and 10% of allowances may be auctioned in phases I and II, respectively, under Articles 9-11 and Annex III of the ETS Directive. This gradual incorporation of auctioning is inconsistent with the fact that private and equity ownership are considerably lower in the EU, and hence EU citizens are more likely than US citizens to object to free allocation. 

Parry (2003) points out that in the USA the top income quintile owns 60% of all shares, with the bottom income quintile owning less than 2%. A survey commissioned by Wall Street Europe concludes that in the USA 60% of households have equity ownership, while in Europe this number is only 18%. Likewise, while in the USA 50% of the population has more than 50k private ownership, excluding property, this compares to only 15% in Europe. (GfK Custom Research Worldwide, Sep/Oct 2004,14,383 people in 18 countries.)... 

In 1926, the Bayer 50 % interest in the profits of Winthrop Chemical would be transformed into a 50% equity ownership in Winthrop Chemical. Wilkins, "History" (ref. 2). 

Becker, Stolberg Labaton, Mortgage Bonfire Binyamin Appelbaum Ellen Na-kashima, Banking Regulator Played Advocate over Enforcer, WP, November 25, 2008, at Bi Nicole Duran, GAO Sides with OCC in Equity Ownership Dispute, American Banker, September 19,2001, at 4 (reduce reserves). 

Capital Investment. Erom the viewpoint of a project, all of the capital that must be raised is external capital. Equity capital is the ownership capital, eg, common and preferred stocks or retained cash, whereas debt capital consists of bonds, mortgages, debentures, and loans. Nearly all investment involves a mixture of both types so as to maximize the return on investment (21). The debt ratio (debt/total capital) for the chemical industry is typically over 30%. Because financial details are not well known during the preliminary phases of project analysis, the investment is viewed simply as the total capital that must be expended to design and build the project. 

The real estate market has changed to the extent that home ownership is not necessarily the best financial option. You may come out ahead by selling your home and renting either a house, apartment, or condo. This option frees all of your home equity for living expenses. 

When considering equity transactions some of the most significant issues to be considered are the valuation of the shares offered at the time of the offer and then at that date of closing which can vary, sometimes quite widely. Another factor which can have a bearing on the attraction of an equity transaction are the requirements for lock-up periods where shares cannot be traded for a defined time following the closing of the transaction. This can be a serious concern to private equity holders as there is an unknowable quantity of risk implied by waiting for the lock-up period to end and this will induce a very cautious approach to valuation as a result. Furthermore the ownership structure of a... 

Venture capitalists Equity Can be large amounts Hard to find, share ownership... 

Biopiracy claims, poorly defined ownership rights over genetic resources, the patenting of life, the protection of traditional knowledge and equity issues have thwarted access issues and have also contributed to the cancellation of biopros-... 

In the broadest sense, an asset may be defined as anything of value, such as cash, land, equipment, raw materials, finished products, or any type of property. At any given instant, a business concern has a certain monetary value because of its assets. At the same instant, many different persons may have a just claim, or equity, to ownership of the concern s assets. Certainly, any creditors would have a just claim to partial ownership, and the owners of the business would have some claim to ownership. Under these conditions, a fundamental relationship in accounting can be written as... 

Equities can be divided into two general classes as follows (1) Proprietor-ship-the claims of the concern or person who owns the asset and (2) liabilities -the claims of anyone other than the owner. The term proprietorship is often referred to as net worth or simply as ownership or capital. Thus, Eq. (1) can be written asf... 

In the 1980s, fundamental changes took place in the state-owned sector with the so-called privatization of the industry. First in Chile, then in the UK, the assets of the publicly-owned electricity authorities were vested in companies which issued equity shares to the general public. This change in ownership was coupled with a fundamental shift in the way electricity was produced and sold. New, cheaper, technologies such as gas-fired, combined cycle, gas turbine plant, which could be built more quickly than the traditional coal-fired steam turbine plant, and which is less labour intensive in its operation, was introduced extensively in the UK. The separate producers of electricity competed with each other on price (per kWh) to win market share. It is alleged, with some justification in the UK, that such competition has reduced the price to the end-user. 

Academia has seen a major shift toward the production of clinical candidates via translational research aided by universities themselves, government and foundation funding, and, in some cases, even outsourcing-for-equity use of CROs. The biotech industry now supplies an increasing number of clinical candidates to pharma via collaboration or acquisition, the value of such deals having gone up tremendously in recent years as pharma looks farther abroad for potential new blockbusters. Genentech, the California model of biotech success, has now become a different sort of model the financial stability afforded by big pharma (Roche) majority ownership combined with its relative autonomy has resulted in innovative new therapies as well as profits that would not have been attainable by either party alone. 

You will recall that the average individual savings rates in Japan are about 20% - 25%. These savings generate capital for re-investment and indirectly make the Japanese society an integral part of the capital formation process. We could logically rationalize that the equity/stock system provides the same opportunity to the individual. The fallacy may be that stock ownership is not as widely spread as savings systems. 

At the heart of the Merton s assumptions, equity holders have an embedded put option by which if at maturity the firm value is greater than promised obligation ox face value, the lender gets back the bond s amount and shareholder maintains the ownership of the company otherwise, if the firm value is lower than the promised payment, the bondholders receive an amount less than bond s face value and the firm defaults. Therefore, in the case of high-put option value, shareholders will have an advantage to walk away from the loan payment, leaving the asset value to the bondholders. 

A bond is therefore a financial contract from the person or body that has issued the bond, that is, the borrowed funds. Unlike shares or equity capital, bonds carry no ownership privileges. The bond remains an interest-bearing obligation of the issuer until it is repaid, which is usually on its maturity date. 

The balance sheet, also called the consolidated balance sheet or statement of consolidated financial condition, is a quantitative summary of a company s financial condition at a specific point in time (at the end of the calendar or fiscal year), including assets, liabilities, and net worth (share owners equity, stockholders equity, or proprietorship). Equity means ownership, generally in the form of common stock or as a holding company. The balance sheet is... 

The most common example of a contract is one for the sale and purchase of goods. While the basic common law rules and rules of equity still apply to such sales, many of the rules are to be found in the Sale of Goods Act 1979, which consolidates legislation that began in 1893. The Act covers the whole range of contract topics such as formation, terms, performance, transfer of ownership, rights of unpaid sellers and remedies. 

The entries arc in alphabetical order, and no attempt has been made by the authors to be restrictive in any entry. Under the heading company ownership", mention is made of major ownership by another company, or of the existence of major equity holders. Otherwise, ownership is assumed to be private or public share ownership, according to the type of company. 

The nomenclature about ownership of golf courses can be confusing. There are both publicly-owned and privately-owned courses which are open for public play. As a whole, this class is referred to as daily fee in the U.S. and pay for play in much of the rest of the world. Private courses which do not allow daily-fee play can be owned by a single owner or by the members, which is more typical. These latter are called equity clubs. Often developers of real estate country club communities will retain ownership of the course until the housing is all sold, at which time they convey ownership to the members. There are many variations on this theme. In Europe, many private country club courses encourage outside green fee play. In the U.S. such a course would be called semi-private. ... 

The keiretsu possesses the particular characteristic of having ownership and control based on equity exchanges between supply chain members. Despite the complexities of their ownership structure, keiretsu represents a supply chain model that helps to explain the organisation of most companies in the automotive and electronics sectors in Japan. 

Supplier associations bring suppliers to an OEM or tier 1 supplier together for the purpose of coordination and development. They also aim to improve the quality and frequency of communications between members. In practice, association companies benchmark each other, and formulate improvement projects aimed at increasing the competitiveness of the overall network. Keiretsu is the term used to describe the supplier association in Japan. Here, the additional characteristics are that ownership and control of the network are based on equity exchanges between members. Keiretsu stmctures have attracted recent criticism because of their relative inflexibility and high capital cost. 

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