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Stockholder's deficit represents a negative book value of a publicly traded company, i.e. the company has greater liabilities than assets (It owes more than it owns). Though investors holding stock in a company reporting a stockholder deficit aren't responsible for the debt, they have a lower (but not zero) chance of seing a short-term return on their investment. Stockholder's equity or deficit can be found in (among other places) the balance sheets of annual 10-k SEC filings. Go to www.sec.gov -> "Filings & forms (EDGAR)" -> Search for Company Filings -> Companies and Other Filers, then Enter ticker symbol -> search form form type "'10-k" -> download the 10-k for the year you would like to research. This information is valid as of Feb 21 2008. If a company you would like to invest in (or already own shares of) has a negative book value, it could still be a good investment. If the overall business model is strong, the price is low but short-term events have created significant, but one-time or short-term losses, the stock could be a good value buy. Also, a company might take on a debt to go after a new market. Stock in such a company might be a good growth purchase. In sum, a reported shareholder's deficit isn't necessarily indicative of a poor investment; it should be taken into consideration with other factors to gauge potential future value. Information contained in this post represents the opinion of the author and may contain inaccuracies and/or ommissions. No information contained should be used as the primary basis for an investment decision. Please seek professional consultation before investing.
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How do you calculate nominal deficit?
nominal deficit is the deficit determined by looking at the difference between expenditures and receipts.real deficit: nominal deficit - (inflation x total debt)
What most accurately describes the power of stockholders?
stockholders can sell their shares in the company at any time.
What is the difference among fiscal deficit budget deficit revenue deficit and trade deficit?
fiscal deficit: not enough money budget deficit: not as much money as you had planned to have in your budget revenue deficit: not enough money coming in trade deficit: you are spending more money on imports than the amount of money which you receive for your exports.
What is monetized deficit?
Monetized deficit is when the government prints money to pay down the deficit.
What most accurately describes one of the powers of stockholders?
Stockholders can sell their shares in the company at any time.
When do preferred stockholders receive dividends in relation to common stockholders?
Preferred stockholders typically receive dividends before common stockholders.
Preferred stockholders take less risk than common stockholders?
Preferred stockholders take more risk than common stockholders.
Which tense is correct Majority of stockholders was present or majority of stockholders were present?
The majority of stockholders were present.
What is the difference between preferred and common stockholders?
Preferred stockholders have a greater claim on the assets and profits of a company compared to common stockholders. If a company is liquidated, preferred stockholders have to be paid first before the common stockholders.
When was Stockholders in Death created?
Stockholders in Death was created in 1940.
How do you calculate the return on common stockholders' equity?
The return on common stockholders' equity is calculated by dividing the net income available to common stockholders by the average common stockholders' equity. This ratio shows how effectively a company is generating profits from the equity invested by common stockholders.
How do you facilitate the stockholders and firm?
information that flows between a firm and stockholders
What is a power of stockholders?
Stockholders can sell their shares in the company at any time
Is Companies' stockholders correct grammar?
You can rephrase it and say "the stockholders of the companies"
Petron Corporation where will be the annual stockholders meeting?
when will be the annual petron stockholders meeting ?
Do preferred stockholders have preferential rights over common stockholders and creditors?
YES
Do Revenues represent decreases in stockholders' equity?
no, they represent increases in stockholders' equity.
