ENT-640 Structuring

Structuring

Structuring, can sometimes be a headache however I look at as if I am building a business I would want the best individuals involved with the process. Sometimes, you have to structure your business and have the mindset that everyone is going to eat and we all are going to eat well. No, one person is greater than the business and we all have a part in the growth of this business from the top to the bottom to the bottom to the top. Everyone must feel a since of ownership of the business.

When it comes to the distribution of the stocks, it is my belief that you take care of your family first. Now, I probably scared you a little and you thought I instantly became selfish and dishonest. What I mean by that statement is you take care of those people that have worked hard for the organization. You set up certain stock options for those people that have vested their time, and money into the organization, in a since they are family, they may not be related to you, but you have been involved in their lives. Common stock is according The Business Dictionary, a type of security that serves as an evidence of proportionate ownership, imparts voting right, however if the business suffers a loss and must be liquidated, you are last to receive any money. Now the preferred convertible stockholders are a little different they are ahead of the common stock holders in the event the company must be liquidated. So, the preferred stock holders will receive their share from what is left from liquidation and to some extent they have more protection when it comes to their holdings.

It would be nice to have a scale that was presented for both the common and preferred shareholders that could potentially change the way we look at societies class, I am a firm believer that everyone that wanted to share in the wealth can if a restructuring was done, to include those that wanted the opportunity to be preferred than to be common. Just listen to the word, “Common”.

 

Retrieved from the Internet June, 27, 2017:http://www.businessdictionary.com/definition/common-stock.html

David Amis-Howard Stevenson (2001). Winning angels: the seven fundamentals of early-stage investing. Pearson Education

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