Common stock and shareholder rights

Common stock and shareholder rights

Bachelor of Business Studies (BBS) — Fourth Year

Subject: Fundamentals of Corporate Finance (FIN 250)

Unit 4: Long-Term Financing

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of common stock and shareholder rights.
• Apply the relevant financial concepts or calculations and explain their assumptions, risks and analytical limits.

Curriculum Scope

• Common stock: Features of common stock
• Legal rights and privileges of common stockholders
• Advantages and disadvantages of common stock

Detailed Microsyllabus

1. Common stock

   1. Ownership features and residual claims.
   2. Voting and other rights under governing materials.
   3. Capital raised without ordinary fixed repayment.

2. Financing assessment

   1. Advantages and disadvantages.
   2. Ownership dilution and issuance costs.
   3. Distinguish legal rights from expected market performance.

---

Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 80–82.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here. Examples involving current laws, rates, institutional products or Nepalese status must identify the relevant period and official materials; no changing numerical or legal requirements are invented here.