Equity Shareholders
They are the owners of the company, sharing its risks, profits, and losses. They have a residual claim on the earnings and assets of the company. after all claims are met they are paid their share of profit , and in the event of the liquidation of the company they share whatever is left of the company after all its creditors have been paid. They enjoy limited liability, i.e., liability only to the extent of their shareholding. Only equity shareholders are a part of management and board of directors and are entitled to vote at the company’s meetings. it is the equity shareholders who is the greatest gainer when the company prospers.
Employee Participation
employee’s Appointment to the board of directors of a representative to take part in policy decisions is contributed as a employee participation.
Employee Buyout
it is when employees buy a majority stake in their own firms.The control of a company passing on to the employees through acquisition of shares individually or by an employee’s trust, usually in the face of a closure This form of buyout is often done by firms looking for an alternative to a leveraged buyout. Companies being sold can be either healthy companies or ones that are in significant financial distress.
. The buyout price offered is usually more than what the erstwhile management of the company could obtain by selling its assets. In some cases government controlled companies are offered for employee buyouts, when the closure of a company will cause large – scale unemployment.
FIFO or First In First Out
A method of inventory valuation in which the cost of first items received in the inventory is taken into the cost of the first items sold. An asset-management and valuation method in which the assets produced or acquired first are sold, used or disposed of first. FIFO may be used by a individual or a corporation. Since in an inflationary situation the first costs of the inventory are lower than the last costs, the cost of goods sold figure will be lower, showing a higher value of the closing in inventory and higher gross profits.
FII Foreign Institutional Investor.
Foreign financial companies are now permitted to operate in the Indian Stock Market. Besides operating mutual funds, they sometimes invest on their own. With large amounts of funds, these have a considerable clout in the market. It’s bad news when they choose to sit idle.