The Legal Background of Watered Stock

The Legal Background of Watered Stock Introduction Watered stock gets the assumption of stock with completely paid-up status. The stock remains fictitiously remunerated but centrally, the real status indicates per value as unpaid. Advertising We will write a custom essay sample on The Legal Background of Watered Stock specifically for you for only $16.05 $11/page Learn More Such stock is meant to represent the company’s worth because stating of the company’s shares indicates existence of utmost good faith from the investor as he/she issues resources for investments to the company’s treasury in the intension of achieving dividends, but the fact remains that the money is never paid to treasury. In a close link to Mitchell (3), watered stock purports to represent the company’s economical worth but fails due to lack of sustentative evidence over existence of the real value. According to Mitchell (2), the stock market became the core unit of the economy through emergence of the modernized corporations and the security markets. The stock markets now are a strong driving force of the economy. The birth of gigantic modernized firms, decades ago is an indication that the control has a long lifespan. At present, business transformation studies indicates that new companies are merging at an alarming rate and thus changing the financial, legal, social and economical status of firms. The big companies are thus in a position of controlling shares or stock by engaging huge manufactory and dumping into the markets. The firms are able to make huge profits from the financial and legally acceptable manipulations as opposed to the anticipated technological, managerial, marketing and distribution advancements. The big manufactures end up as stock speculators as opposed to the economically viable bond or shares buyers/sellers. The situation causes a scenario where instead of the finance dominating the manufactory industries, the wide spread stock ownership dominat es finance. Stock markets began as a tool to assist up-coming businesses, but today the empowered managers utilizes the stock markets as a precise tool for managing tasks within firms (Mitchell, 3). It is the drive behind investments, decision making, planning and operating that causes a great effect to the overall economic development. Watered markets transform manufactory business institutions from the producers and suppliers they ought to be, to profit focused institutions. Today the drive behind creation of business stock markets is no longer the production and real supply, but rather modern stock markets are the key factors most businesses are merging and focusing upon.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More According to Mitchell (7), the development of watered stock market came about in various distinct stages for instance; the business mergers in the aim of enhanci ng direct production caused the watered stock. Business mergers were mainly as an injection of new investors into the market segments. Effects of the stock markets The fine understanding of watered stock presented to potential investors today, is the inequitable ownership of an entity such as a company because the worth of a venture at any given time is not equitable to the real investment and for that reason, most investors understand watered stock as security fraud. The security and exchange commission as an agency often regulates the securities and thus has the responsibility of protecting the investors. With he current trends the insecurity that lead to illegal or manipulative acts and fraudulent dealings world wide, the dealings patterns have widely changed the way investors view the protection and supervision accorded by the commission. Collapse of prominent companies causes the investors to be holders of the watered stock when the company closes its dealing and forces them to pay up for its value. The investors are keen and the trends seem to indicate the need to stay safe by purchasing only low per stock. The no par or low par stock prevents one from high liability of the stockownership, in cases of a collapse. Mitchell, Lawrence. The Speculation Economy: How Finance Triumphed Over Industry. San Francisco: Berrett – Koehler, 2007

Airlines

Airlines Are the changes in baggage handling helping ease the mind of the frequent flier? The tragic events of September 11 caused a tremendous ripple of changes in the United States. One large and important response has been a deep revision of an important form of travel. Airport security over the past four months has been looked at under a microscope. The change in baggage handling has drawn a lot of concern. The old lackluster method for checking bags is a way of the past. The new method calls for all bags that are checked to be examined. Is this justified? Is the government worrying about the wrong aspects of air travel? Will changes like these promote or deter people from flying? The government is passing legislation to tighten up all forms of security in airports. Will this make passengers safer? Will people be compelled to fly if they know that all the baggage in the planes belly has been searched? Most people never thought the events on September 11 could happen.Biometric United State s passport issued in 2007Will this change prevent problems on airplanes? These days less people are willing to travel. If things do not get better soon many people might never fly again. It only makes sense that the government should try and make it clear in the minds of the travelers, that every possible thing is being done to make air travel safer. Are the procedures that are being put in place making people feel safer, or are they making flying a hassle for the passengers? The things that are being done by the government should make the current status of air travel better. Are United States Citizens once again becoming comfortable with flying?

Prison system in America Essay Example | Topics and Well Written Essays - 1250 words

Prison system in America - Essay Example Arguments against imprisonment include the idea that prison is not being used as a last resort to deter criminal behavior, housing prisoners is expensive, imprisonment doesn’t deter crime and it is cruel and inhumane. Despite statistics that confirm these contentions, imprisonment has experienced a growing attraction as a political response to crime. An increased prison population and its inherent human and financial costs have little effect on the attitudes of some. Despite the obvious and extensive failures of our penitentiary system, more people are being sent to prison for more reasons primarily as a result of tougher sentencing laws specifically involving the ‘war on drugs.’ Over the past quarter century, the U.S. has added to its prison population and therefore to its social problems. Anyone who has seen a prison movie likely has witnessed the stereotypical ‘shower scene’ where gang members viciously attack a lone inmate. They put a knife tightl y against the victim’s throat and threaten to kill him if he puts up a fight. The lone inmate is then repeatedly raped by the gang and afterwards is too frightened to notify prison officials fearing retribution. This Hollywood recreation is not unlike the actual events taking place inside prison walls. Being brutally raped in prison is not simply a physical violation; it is an emotionally scarring event. According to the Human Rights Watch, this and other forms of gang-related violence occur regularly in prisons across the country. â€Å"Gang assaults are not uncommon, and victims may be left beaten, bloody and, in the most extreme cases, dead† (â€Å"No Escape†). However, violent and blatant rapes are but one type of sexual abuse many prisoners must endure. The most prevalent form of rape does not occur by means of violence nor have many of the victims been overtly threatened. Nevertheless, they engage in sex acts unwillingly because they do not believe they ha ve a choice. Prison is an intimidating place. Prisoners, especially those new to the system can be easily coerced into doing things such as allowing themselves to be raped or committing violent acts against others out of fear. This type of prison rape is easier to conceal than violent attacks and much easier for prison staff and the general public to ignore. â€Å"For some prisoners, the atmosphere of fear and intimidation is so overwhelming that they acquiesce in their sexual exploitation without putting up any obvious resistance† (â€Å"No Escape,† 2006). The intimidation begins early and forcefully. According to the account of a first-time offender arriving in prison, â€Å"as soon as I walked on the wing, the catcalls started.† According to another prisoner, â€Å"Most of prison is a mind game. People get taken advantage of when they’re green and don’t know what to expect† (â€Å"No Escape,† 2006). Prison is described by its detra ctors as inhumane, a brutalizing and damaging experience. The prevalent imprisonment trend invokes a high human cost to those who caused no harm to another individual or property. The war on drugs is policy based on morals, not on public health, and is taking a grave toll on the economics and civil liberties of our society. Crime is on the rise overcrowding the prison system while inner cities are becoming unlivable decreasing chances for the economic revival in those areas, all as a consequence of a misguided war on drugs to prevent the misuse of drugs. These governmental drug programs have had very little if any reduction in the use of drugs but a great many innocent victims have had their lives ruined. â€Å"