Question: 1. Shareholder Concerns a. Voting Structure (0.5 mark): If it is a publicly traded firm, look at whether the firm has multiple classes of shares

1. Shareholder Concerns

a. Voting Structure (0.5 mark): If it is a publicly traded firm, look at whether the firm has multiple classes of shares and if so, whether they have different voting rights. If the government is an investor, check to see whether it has veto powers (golden shares) over key decisions.

b. Ownership structure (1.5 marks): Start by looking at proportions of the outstanding stock held by institutions, insiders and individuals. This data is generally available in public sources, in most countries.

  • How many stockholders does the company have?
  • What percent of the stock is held by institutional investors?
  • Does the company have listings in foreign markets? (If you can, estimate the percent of the stock held by non-domestic investors)
  • Who are the insiders in this company? (Besides the managers and directors, anyone with more than 5% is treated as an insider)
  • What role do the insiders play in running the company?
  • What percent of the stock is held by insiders in the company?
  • What percent of the stock is held by employees overall? (Include the holdings by employee pension plans)
  • Have insiders been buying or selling stock in this company in the most recent year?

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