is this a benefit of the UST? Securities are traded. Securites are results of endorsement?
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is this a benefit of the UST? Securities are traded. Securites are results of endorsement?
What is UST?Quote:
Originally Posted by Richard Earl
Securities fall into two principal classes: debt securities and equity securities.
A stock is an equity security.
What is equity?
Equity is the residual interest or claim of the most junior class of investors of an asset. Equity is also called risk or liability capital.
What this means is that:
a) you are an investor titled "owner"
b) you are the at the bottom in terms of rank of investors
c) you have an interest or claim in the asset. Your "ownership" is qualified (limited, reduced in form).
d) secured creditors and general creditors are paid first in the event of liquidation (bankruptcy) of all assets. You may or may not receive any money after all creditors have been paid. In fact, you may have negative equity (owe money).
With stock, we have two primary creditors: banks and bondholders. These investors will be paid first in the event of bankruptcy. I haven't researched this point yet, how much would you like to bet that banks have set it up so that they are paid first before bondholders?
Also with regard to stock, there may be varying classes of such as class A, B, and C shares of stock. The stock market primarily sells class C stock to the general public.
Securities are the result of registration.
Nothing wrong with investing, trading, or speculating in commercial paper so long as its done in a vehicle for holding such paper along with its corresponding risks (taxation, loss of value, etc.).
In my opinion, flesh and blood women and men have no need for commercial paper. The blood of corporations is commercial paper.
Ah yes, but most business are not conducting themselves with redeemed lawful money. Therefore, wouldn't the treasury have first lien on the corporations? If I own stocks purchased with redeemed lawful money, am I protected from the first lien of the treasury? UST = United States Trust
Let's step back a bit:Quote:
Originally Posted by Richard Earl
The business in your example will be incorporated. The corporate charter was granted by government. State government in this case. The status of being a corporation with limited liability belongs to the State. Thus, you agree to be regulated in usage of the State's grant.
A business itself is a trust. The assets of the business aren't owned by government, the so-called owner, or the stockholders. It is held by the business. When the business ends, its assets are liquidated. Payments are dispersed to parties.
We can leave the UST out of this. Most grants of incorporation shall be granted by State governments. The federal government will issue few grants of incorporation.
A stock grants you privileges of voting as well as a portion of its profits if there is any.
How is a business a trust?
settlor (grantor) - *government
trustees - executive board & business owners
beneficiary - general public
* The petitioner prays government for the grant of INCORPORATION. Incorporation is a franchise (common law). A franchise is the exercise of a sovereign prerogative in the hands of a subject. A prerogative is an exclusive right from all others in a territory. A prerogative is a monopoly.
Being the grant is the creation of government, government reserves the right to regulate, derive usufruct from, and if necessary dissolve the corporation.
Trustees derive remuneration and other privileges from the business.