Jun 16, 2016

Video Resource: What's A Corporation? What's A Share of Stock?

NPR has been running an excellent series called the Price of Profits over the past week on the implications of the corporate laser-like focus on shareholder value and how profits have become their new “product.” Here are a few explainer videos and an audio piece about the demise of Sears, once the dominant retailer on this country. Enjoy!

What is a corporation?

Questions:

  • Difference between public and private corporations?
  • What is a corporation? How does a corporation help reduce risks for individuals?
  • Is a corporation considered “a person?”
  • What is limited liability and how does it protect shareholders?
  • What is one difference between a person and corporation?

What does it mean to own shares in a company?

Questions:

  • What rights does a shareholder have?
  • How are shares like a box of chocolates?
  • Why should you care about the shares you own?

Wondering what has happened to Sears, whose annual catalog was dog-eared by me and my five siblings and was the king of retail during my early childhood (3:14 audio)?

Questions:

  • How has the company been using their excess cash? Have they been investing in their stores and employees?
  • How has the stock performed recently?
  • Why is the company buying back their stock? What do they hope to achieve?

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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