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Suppose Several Senior Managers Recently Left Google and Went to Work

question 13

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Suppose several senior managers recently left Google and went to work at rival Microsoft.What part of the "stocks and flows" of resources does this represent for Microsoft?


Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, carrying voting rights and potentially dividends.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends and without voting rights.

Stock Split

An action by a company to divide its existing shares into multiple new shares to boost the liquidity of the shares, though the overall value of one’s investment remains the same.

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares, rather than cash.

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