Resona Holdings, Inc. is the holding company of Resona Group, the fifth-largest banking group in Japan as of 2012. It is headquartered in the Kiba area of Tokyo; the main operating entities of the group are Resona Bank, a nationwide corporate and retail bank headquartered in Osaka, Saitama Resona Bank, a smaller bank headquartered in Saitama City which serves Saitama Prefecture. Most of these banks' operations are descended from Daiwa Bank and Asahi Bank, which merged in 2003. Resona was formed as the Osaka Nomura Bank in 1918; this entity served. Its securities brokerage operation separated in 1926 to form Nomura Securities, now Japan's largest securities company; the bank was renamed Nomura Bank in 1927 and became the main bank for the Osaka Prefecture government in 1929 following the 1929 stock market crash. The Nomura zaibatsu was dissolved in the wake of World War II, the bank was renamed to The Daiwa Bank in 1948, it was one of the only major banks that offered both banking and trust services during the postwar era.
In 1995, a New York-based Daiwa bond trader, Toshihide Iguchi, lost $1.1 billion speculating in the bond market and was charged with forgery and falsification of bank records. The bank was criminally indicted in November 1995 and ordered to leave the U. S. market. Daiwa closed its United States operations in 1996, pulled out of overseas banking in 1998. Japan Saving Bank was formed by a 9-bank merger in May 1945 to consolidate various savings banks that served Japanese individuals around the end of World War II. During the immediate postwar era, rapid inflation threatened the bank's business. In 1948, it was converted to an ordinary bank named Kyowa Bank. Kyowa merged with Saitama Bank in 1991 to form Kyowa Saitama Bank, renamed Asahi Bank in 1992. Asahi entered into merger talks with Sanwa Bank and Tokai Bank, the three banks announced a merger in 2001; the merger would have created the third-largest bank in the world behind Deutsche Bank and Mizuho Financial Group. However, Asahi pulled out of these talks that year.
The eventual Sanwa-Tokai merger formed UFJ Bank. Daiwa formed a bank holding company, Daiwa Bank Holdings, in December 2001 to serve as the parent entity of Daiwa, Kinki Osaka Bank and Nara Bank; that month, Daiwa announced that Asahi Bank would be acquired by Daiwa Bank Holdings in a share swap transaction, forming the fifth-largest banking group in Japan. The company was renamed Resona Holdings, Inc. on October 1, 2002. Daiwa and Asahi consolidated operations on March 1, 2003, with most of their assets combined to form Resona Bank. 100 Asahi Bank branches in Saitama and three branches in Tokyo were moved to a separate entity, Saitama Resona Bank. In early 2003 the Resona Group's capital adequacy ratio fell dangerously low; the bank had proposed to maintain its capital adequacy ratio above the legal limit by factoring in deferred tax assets. However, the value of these deferred assets could only be claimed if the company turned a profit in the future; because of bank's profit outlook was so dim, Resona's auditor refused to certify the company's financial statement if the deferred tax assets were included.
Without being able to count the deferred tax assets, the bank was insolvent. The Resona case threatened to cripple the entire country's financial system, since the other major banks were counting on deferred tax assets to maintain their capital adequacy ratios. On May 17, 2003, the Japan government decided to inject 1.96 trillion yen in public funds into the Resona Group through Resona Bank. This move, through the share exchange agreement between the bank and the holding company nationalized the bank, since the government emerged as the company's majority shareholder, holding 68.25% of voting rights of the holding company, while the holdings of existing shareholders was diluted. The existing management was sacked and a new management was installed. Former Resona Chairman Eiji Hosoya is credited with leading the bank's revival following the 2003 bailout. Hosoya resisted taking the appointment to head Resona, saying in a news conference held on May 30, 2003, "I decided to accept the offer as I realized that stabilizing the financial system is the highest priority for the Japanese economy."
Under Hosoya, the bank's new management set about to reduce Resona's non-performing loans. In 2004, the company managed to turn a profit of ￥386 billion; as a result, Resona's management announced a plan to, over the next 10 years, return to the government ￥868 billion of the ￥3 trillion in public funds it has received. Hosoya died in November 2012. Resona introduced two new full-time employee career tracks in 2015: one "no overtime" track for employees seeking better work-life balance, another track for employees who wish to remain in a single position for their entire career; these policies were unique among Japanese banks at the time of their introduction. January 2014, an unnamed employee, aged 25 year, in Ikebukuro, lost 150 million yen in foreign-exchange-market and other trading, without telling his bosses, committed suicide. Resona Bank, Limited Saitama Resona Bank, Limited The Kinki Osaka Bank, Limited Resona Trust & Banking Company, Limited Resona Holdings, Inc. Press Release Announcing Criminal Indictment Of Daiwa Bank, 11/2/95
Minnesota is a state in the Upper Midwest and northern regions of the United States. Minnesota was admitted as the 32nd U. S. state on May 11, 1858, created from the eastern half of the Minnesota Territory. The state has a large number of lakes, is known by the slogan the "Land of 10,000 Lakes", its official motto is L'Étoile du Nord. Minnesota is the 12th largest in area and the 22nd most populous of the U. S. states. This area is the center of transportation, industry and government, while being home to an internationally known arts community; the remainder of the state consists of western prairies now given over to intensive agriculture. Minnesota was inhabited by various indigenous peoples for thousands of years prior to the arrival of Europeans. French explorers and fur traders began exploring the region in the 17th century, encountering the Dakota and Ojibwe/Anishinaabe tribes. Much of what is today Minnesota was part of the vast French holding of Louisiana, purchased by the United States in 1803.
Following several territorial reorganizations, Minnesota in its current form was admitted as the country's 32nd state on May 11, 1858. Like many Midwestern states, it remained centered on lumber and agriculture. During the 19th and early 20th centuries, a large number of European immigrants from Scandinavia and Germany, began to settle the state, which remains a center of Scandinavian American and German American culture. In recent decades, immigration from Asia, the Horn of Africa, the Middle East, Latin America has broadened its demographic and cultural composition; the state's economy has diversified, shifting from traditional activities such as agriculture and resource extraction to services and finance. Minnesota's standard of living index is among the highest in the United States, the state is among the best-educated and wealthiest in the nation; the word Minnesota comes from the Dakota name for the Minnesota River: The river got its name from one of two words in the Dakota language,'Mní sóta' which means "clear blue water", or'Mnißota', which means cloudy water.
Native Americans demonstrated the name to early settlers by dropping milk into water and calling it mnisota. Many places in the state have similar names, such as Minnehaha Falls, Minneota, Minnetonka and Minneapolis, a combination of mni and polis, the Greek word for "city". Minnesota is the second northernmost U. S. state and northernmost contiguous state. Its isolated Northwest Angle in Lake of the Woods county is the only part of the 48 contiguous states lying north of the 49th parallel; the state is part of the U. S. region known as part of North America's Great Lakes Region. It shares a Lake Superior water border with Michigan and a land and water border with Wisconsin to the east. Iowa is to the south, North Dakota and South Dakota are to the west, the Canadian provinces of Ontario and Manitoba are to the north. With 86,943 square miles, or 2.25% of the United States, Minnesota is the 12th-largest state. Minnesota has gneisses that are about 3.6 billion years old. About 2.7 billion years ago, basaltic lava poured out of cracks in the floor of the primordial ocean.
The roots of these volcanic mountains and the action of Precambrian seas formed the Iron Range of northern Minnesota. Following a period of volcanism 1.1 billion years ago, Minnesota's geological activity has been more subdued, with no volcanism or mountain formation, but with repeated incursions of the sea, which left behind multiple strata of sedimentary rock. In more recent times, massive ice sheets at least one kilometer thick ravaged the state's landscape and sculpted its terrain; the Wisconsin glaciation left 12,000 years ago. These glaciers covered all of Minnesota except the far southeast, an area characterized by steep hills and streams that cut into the bedrock; this area is known as the Driftless Zone for its absence of glacial drift. Much of the remainder of the state outside the northeast has 50 feet or more of glacial till left behind as the last glaciers retreated. Gigantic Lake Agassiz formed in the northwest 13,000 years ago, its bed created the fertile Red River valley, its outflow, glacial River Warren, carved the valley of the Minnesota River and the Upper Mississippi downstream from Fort Snelling.
Minnesota is geologically quiet today. The state's high point is Eagle Mountain at 2,301 feet, only 13 miles away from the low of 601 feet at the shore of Lake Superior. Notwithstanding dramatic local differences in elevation, much of the state is a rolling peneplain. Two major drainage divides meet in Minnesota's northeast in rural Hibbing, forming a triple watershed. Precipitation can follow the Mississippi River south to the Gulf of Mexico, the Saint Lawrence Seaway east to the Atlantic Ocean, or the Hudson Bay watershed to the Arctic Ocean; the state's nickname, "Land of 10,000 Lakes", is apt, as there are 11,842 Minnesota lakes over 10 acres in size. Minnesota's portion of Lake Superior is the largest at 962,700 acres and deepest body of wate
Tokyo Tokyo Metropolis, one of the 47 prefectures of Japan, has served as the Japanese capital since 1869. As of 2018, the Greater Tokyo Area ranked as the most populous metropolitan area in the world; the urban area houses the seat of the Emperor of Japan, of the Japanese government and of the National Diet. Tokyo forms part of the Kantō region on the southeastern side of Japan's main island and includes the Izu Islands and Ogasawara Islands. Tokyo was named Edo when Shōgun Tokugawa Ieyasu made the city his headquarters in 1603, it became the capital after Emperor Meiji moved his seat to the city from Kyoto in 1868. Tokyo Metropolis formed in 1943 from the merger of the former Tokyo Prefecture and the city of Tokyo. Tokyo is referred to as a city but is known and governed as a "metropolitan prefecture", which differs from and combines elements of a city and a prefecture, a characteristic unique to Tokyo; the 23 Special Wards of Tokyo were Tokyo City. On July 1, 1943, it merged with Tokyo Prefecture and became Tokyo Metropolis with an additional 26 municipalities in the western part of the prefecture, the Izu islands and Ogasawara islands south of Tokyo.
The population of the special wards is over 9 million people, with the total population of Tokyo Metropolis exceeding 13.8 million. The prefecture is part of the world's most populous metropolitan area called the Greater Tokyo Area with over 38 million people and the world's largest urban agglomeration economy; as of 2011, Tokyo hosted 51 of the Fortune Global 500 companies, the highest number of any city in the world at that time. Tokyo ranked third in the International Financial Centres Development Index; the city is home to various television networks such as Fuji TV, Tokyo MX, TV Tokyo, TV Asahi, Nippon Television, NHK and the Tokyo Broadcasting System. Tokyo third in the Global Cities Index; the GaWC's 2018 inventory classified Tokyo as an alpha+ world city – and as of 2014 TripAdvisor's World City Survey ranked Tokyo first in its "Best overall experience" category. As of 2018 Tokyo ranked as the 2nd-most expensive city for expatriates, according to the Mercer consulting firm, and the world's 11th-most expensive city according to the Economist Intelligence Unit's cost-of-living survey.
In 2015, Tokyo was named the Most Liveable City in the world by the magazine Monocle. The Michelin Guide has awarded Tokyo by far the most Michelin stars of any city in the world. Tokyo was ranked first out of all sixty cities in the 2017 Safe Cities Index; the QS Best Student Cities ranked Tokyo as the 3rd-best city in the world to be a university student in 2016 and 2nd in 2018. Tokyo hosted the 1964 Summer Olympics, the 1979 G-7 summit, the 1986 G-7 summit, the 1993 G-7 summit, will host the 2019 Rugby World Cup, the 2020 Summer Olympics and the 2020 Summer Paralympics. Tokyo was known as Edo, which means "estuary", its name was changed to Tokyo when it became the imperial capital with the arrival of Emperor Meiji in 1868, in line with the East Asian tradition of including the word capital in the name of the capital city. During the early Meiji period, the city was called "Tōkei", an alternative pronunciation for the same characters representing "Tokyo", making it a kanji homograph; some surviving official English documents use the spelling "Tokei".
The name Tokyo was first suggested in 1813 in the book Kondō Hisaku, written by Satō Nobuhiro. When Ōkubo Toshimichi proposed the renaming to the government during the Meiji Restoration, according to Oda Kanshi, he got the idea from that book. Tokyo was a small fishing village named Edo, in what was part of the old Musashi Province. Edo was first fortified in the late twelfth century. In 1457, Ōta Dōkan built Edo Castle. In 1590, Tokugawa Ieyasu was transferred from Mikawa Province to Kantō region; when he became shōgun in 1603, Edo became the center of his ruling. During the subsequent Edo period, Edo grew into one of the largest cities in the world with a population topping one million by the 18th century, but Edo was Tokugawa's home and was not capital of Japan. The Emperor himself lived in Kyoto from 794 to 1868 as capital of Japan. During the Edo era, the city enjoyed a prolonged period of peace known as the Pax Tokugawa, in the presence of such peace, Edo adopted a stringent policy of seclusion, which helped to perpetuate the lack of any serious military threat to the city.
The absence of war-inflicted devastation allowed Edo to devote the majority of its resources to rebuilding in the wake of the consistent fires and other devastating natural disasters that plagued the city. However, this prolonged period of seclusion came to an end with the arrival of American Commodore Matthew C. Perry in 1853. Commodore Perry forced the opening of the ports of Shimoda and Hakodate, leading to an increase in the demand for new foreign goods and subsequently a severe rise in inflation. Social unrest mounted in the wake of these higher prices and culminated in widespread rebellions and demonstrations in the form of the "smashing" of rice establishments. Meanwhile, supporters of the Meiji Emperor leveraged the disruption that t
A ticker symbol or stock symbol is an abbreviation used to uniquely identify publicly traded shares of a particular stock on a particular stock market. A stock symbol may consist of numbers or a combination of both. "Ticker symbol" refers to the symbols. Stock symbols are unique identifiers assigned to each security traded on a particular market. A stock symbol can consist of letters, numbers, or a combination of both, is a way to uniquely identify that stock; the symbols were kept as short as possible to reduce the number of characters that had to be printed on the ticker tape, to make it easy to recognize by traders and investors. The allocation of symbols and formatting convention is specific to each stock exchange. In the US, for example, stock tickers are between 1 and 4 letters and represent the company name where possible. For example, US-based computer company stock Apple Inc. traded on the NASDAQ exchange has the symbol AAPL, while the motor company Ford's stock, traded on the New York Stock Exchange has the single-letter ticker F.
In Europe, most exchanges use three-letter codes, for example Dutch consumer goods company Unilever traded on the Amsterdam Euronext exchange has the symbol UNA. While in Asia, numbers are used as stock tickers to avoid issues for international investors when using non-Latin scripts. For example, the bank HSBC's stock traded on the Hong Kong Stock Exchange has the ticker symbol 0005. Symbols sometimes change to reflect mergers. Prior to the 1999 merger with Mobil Oil, Exxon used a phonetic spelling of the company "XON" as its ticker symbol; the symbol of the firm after the merger was "XOM". Symbols are sometimes reused. In the US the single-letter symbols are sought after as vanity symbols. For example, since Mar 2008 Visa Inc. has used the symbol V, used by Vivendi which had delisted and given up the symbol. To qualify a stock, both the ticker and the exchange or country of listing needs to be known. On many systems both must be specified to uniquely identify the security; this is done by appending the location or exchange code to the ticker.
Although stock tickers identify a security, they are exchange dependent limited to stocks and can change. These limitations have led to the development of other codes in financial markets to identify securities for settlement purposes; the most prevalent of these is the International Securities Identifying Number. An ISIN uniquely identifies a security and its structure is defined in ISO 6166. Securities for which ISINs are issued include bonds, commercial paper and warrants; the ISIN code is a 12-character alpha-numerical code that does not contain information characterizing financial instruments, but serves for uniform identification of a security at trading and settlement. The ISIN identifies not the exchange on which it trades. For instance, Daimler AG stock trades on twenty-two different stock exchanges worldwide, is priced in five different currencies. ISIN cannot specify a particular trade in this case, another identifier the three- or four-letter exchange code will have to be specified in addition to the ISIN.
While a stock ticker identifies a security that can be traded, stock market indices are sometimes assigned a symbol though they can not be traded. Symbols for indices are distinguished by adding a symbol in front of the name, such as a caret or a dot. For example, Reuters lists the Nasdaq Composite index under the symbol. IXIC. In Canada the Toronto Stock Exchange TSX and the TSXV use the following special codes after the ticker symbol: In the United Kingdom, prior to 1996, stock codes were known as EPICs, named after the London Stock Exchange's Exchange Price Information Computer. Following the introduction of the Sequence trading platform in 1996, EPICs were renamed Tradable Instrument Display Mnemonics, but they are still referred to as EPICs. Stocks can be identified using their SEDOL number or their ISIN. In the United States, modern letter-only ticker symbols were developed by Standard & Poor's to bring a national standard to investing. A single company could have many different ticker symbols as they varied between the dozens of individual stock markets.
The term ticker refers to the noise made by the ticker tape machines once used by stock exchanges. The S&P system was standardized by the securities industry and modified as years passed. Stock symbols for preferred stock have not been standardized; some companies use a well-known product as their ticker symbol. Belgian brewer InBev, the brewer of Budweiser beer, uses "BUD" as its three-letter ticker for American Depository Receipts, symbolizing its premier product in the United States, its rival, Molson Coors Brewing Company, uses a beer-related symbol, "TAP". Southwest Airlines pays tribute to its headquarters at Love Field in Dallas through its "LUV" symbol. Cedar Fair Entertainment Company, which operates large amusement parks in the United States, uses "FUN" as its symbol. Harley-Davidson uses "HOG" for its Harley Owners Group. Yamana Gold uses "AUY", because on the periodic table of elements. Sotheby's uses the symbol "BID". While most symbols come from the company's name, sometimes it happens the other way around.
Tricon Global, owner of KFC, Pi
The Tōhoku region, Northeast region, or Northeast Japan consists of the northeastern portion of Honshu, the largest island of Japan. This traditional region consists of six prefectures: Akita, Fukushima, Iwate and Yamagata. Tōhoku retains a reputation as a scenic region with a harsh climate. In the 20th century, tourism became a major industry in the Tōhoku region. In mythological times, the area was known as Azuma and corresponded to the area of Honshu occupied by the native Ainu; the area was the Dewa and the Michinoku regions, a term first recorded in Hitachi-no-kuni Fudoki. There is some variation in modern usage of the term "Michinoku". Tōhoku's initial historical settlement occurred between the seventh and ninth centuries, well after Japanese civilization and culture had become established in central and southwestern Japan; the last stronghold of the indigenous Emishi on Honshu and the site of many battles, the region has maintained a degree of autonomy from Kyoto at various times throughout history.
The haiku poet Matsuo Bashō wrote Oku no Hosomichi during his travels through Tōhoku. The region is traditionally known as a less developed area of Japan; the catastrophic 9.0-Magnitude earthquake and tsunami on March 11, 2011, inflicted massive damage along the east coast of this region, killed 15,894 people and was the costliest natural disaster which left 500,000 people homeless along with radioactive fallout from the Fukushima Daiichi nuclear disaster. Masamune, feudal lord of Date clan, expanded trade in the Tōhoku region. Although faced with attacks by hostile clans, he managed to overcome them after a few defeats and ruled one of the largest fiefdoms of the Tokugawa shogunate, he worked on many projects to beautify the region. He is known to have encouraged foreigners to come to his land. Though he funded and promoted an envoy to establish relations with the Pope in Rome, he was motivated at least in part by a desire for foreign technology, similar to that of other lords, such as Oda Nobunaga.
Further, once Tokugawa Ieyasu outlawed Christianity, Masamune reversed his position, though disliking it, let Ieyasu persecute Christians in his domain. For 270 years, Tōhoku remained a place of tourism and prosperity. Matsushima, for instance, a series of tiny islands, was praised for its beauty and serenity by the wandering haiku poet Matsuo Bashō, he showed sympathy for Christian traders in Japan. In addition to allowing them to come and preach in his province, he released the prisoner and missionary Padre Sotelo from the hands of Tokugawa Ieyasu. Date Masamune allowed Sotelo as well as other missionaries to practice their religion and win converts in Tōhoku; the most used subdivision of the region is dividing it to "North Tōhoku" consisting of Aomori and Iwate Prefectures and "South Tōhoku" consisting of Yamagata and Fukushima Prefectures. The population collapse of Tōhoku, which began before the year 2000, has accelerated, now including dynamic Miyagi. Despite this, Sendai City has grown due to the disaster.
The population collapse of Aomori and Akita Prefectures, Honshu's 3 northernmost, began in the early 1980s after an initial loss of population in the late 1950s. Fukushima Prefecture, prior to 1980, had traditionally been the most populated, but today Miyagi is the most populated and urban by far. Tōhoku, like most of Japan, is mountainous, with the Ōu Mountains running north-south; the inland location of many of the region's lowlands has led to a concentration of much of the population there. Coupled with coastlines that do not favor seaport development, this settlement pattern resulted in a much greater than usual dependence on land and rail transportation. Low points in the central mountain range make communications between lowlands on either side of the range moderately easy. Tōhoku was traditionally considered the granary of Japan because it supplied Sendai and the Tokyo-Yokohama market with rice and other farming commodities. Tōhoku provided 20 percent of the nation's rice crop; the climate, however, is harsher than in other parts of Honshū due to the stronger effect of the Siberian High, permits only one crop a year on paddy fields.
In the 1960s, steel, chemical and petroleum refining industries began developing. Designated citiesSendai Core citiesIwaki Koriyama Akita Morioka Aomori Hachinohe Other citiesAizuwakamatsu Daisen Date Fukushima Goshogawara Hachimantai Hanamaki Higashimatsushima Higashine Hirakawa Hirosaki Ichinoseki Ishinomaki Iwanuma Kakuda Kamaishi Kaminoyama Katagami Kazuno Kesennuma Kitaakita Kitakami Kitakata Kuji Kurihara Kuroishi Minamisōma Misawa Miyako Motomiya Murayama Mutsu Nagai Nan'yō Natori Nihonmatsu Nikaho Ninohe Noshiro Obanazawa Oga Ōdate Ōfunato Ōsaki Ōshū Rikuzentakata Sagae Sakata Semboku Shinjō Shiogama Shirakawa Shiroishi Sōma Sukagawa Tagajō Takizawa Tamura Tendō Tome Tomiya Tōno Towada Tsugaru Tsuruoka Yamagata Yokote Yonezawa Yurihonjō Yuzawa Mount Bandai Three Mountains of Dewa Hakkōda Mountains Mount Hayachine Mount Iwaki Lake Tazawa Lake Towada Kitakami River Oirase River Valley the islands of Matsushima Bay Mount Osore Sanriku Coastline Bandai-Asahi National Park Miss Veedol Beach Rikuchu Kaigan National Park Towada-Hachimantai National Park 2011 Tōhoku earthquake and tsunami 2006 Kuril Islands earthquake Geography of Japan Tōhoku dialect List of regions in Japan Nussbaum, Louis-Frédéric and Käthe Roth..
Japan encyclopedia. Cambr
A public company, publicly traded company, publicly held company, publicly listed company, or public limited company is a corporation whose ownership is dispersed among the general public in many shares of stock which are traded on a stock exchange or in over the counter markets. In some jurisdictions, public companies over a certain size must be listed on an exchange. A public company can be unlisted. Public companies are formed within the legal systems of particular nations, therefore have national associations and formal designations which are distinct and separate. For example one of the main public company forms in the United States is called a limited liability company, in France is called a "society of limited responsibility", in Britain a public limited company, in Germany a company with limited liability. While the general idea of a public company may be similar, differences are meaningful, are at the core of international law disputes with regard to industry and trade. In the early modern period, the Dutch developed several financial instruments and helped lay the foundations of modern financial system.
The Dutch East India Company became the first company in history to issue bonds and shares of stock to the general public. In other words, the VOC was the first publicly traded company, because it was the first company to be actually listed on an official stock exchange. While the Italian city-states produced the first transferable government bonds, they did not develop the other ingredient necessary to produce a fledged capital market: corporate shareholders; as Edward Stringham notes, "companies with transferable shares date back to classical Rome, but these were not enduring endeavors and no considerable secondary market existed." The securities of a publicly traded company are owned by many investors while the shares of a held company are owned by few shareholders. A company with many shareholders is not a publicly traded company. In the United States, in some instances, companies with over 500 shareholders may be required to report under the Securities Exchange Act of 1934. Public companies possess some advantages over held businesses.
Publicly traded companies are able to raise funds and capital through the sale of shares of stock. This is the reason publicly traded corporations are important; the profit on stock is gained in form of capital gain to the holders. The financial media and the public are able to access additional information about the business, since the business is legally bound, motivated, to publicly disseminate information regarding the financial status and future of the company to its many shareholders and the government; because many people have a vested interest in the company's success, the company may be more popular or recognizable than a private company. The initial shareholders of the company are able to share risk by selling shares to the public. If one were to hold a 100% share of the company, he or she would have to pay all of the business's debt; this increases asset liquidity and the company does not need to depend on funding from a bank. For example, in 2013 Facebook founder Mark Zuckerberg owned 29.3% of the company's class A shares, which gave him enough voting power to control the business, while allowing Facebook to raise capital from, distribute risk to, the remaining shareholders.
Facebook was a held company prior to its initial public offering in 2012. If some shares are given to managers or other employees, potential conflicts of interest between employees and shareholders will be remitted; as an example, in many tech companies, entry-level software engineers are given stock in the company upon being hired. Therefore, the engineers have a vested interest in the company succeeding financially, are incentivized to work harder and more diligently to ensure that success. Many stock exchanges require that publicly traded companies have their accounts audited by outside auditors, publish the accounts to their shareholders. Besides the cost, this may make useful information available to competitors. Various other annual and quarterly reports are required by law. In the United States, the Sarbanes–Oxley Act imposes additional requirements; the requirement for audited books is not imposed by the exchange known as OTC Pink. The shares may be maliciously held by outside shareholders and the original founders or owners may lose benefits and control.
The principal-agent problem, or the agency problem is a key weakness of public companies. The separation of a company's ownership and control is prevalent in such countries as U. K and U. S. In the United States, the Securities and Exchange Commission requires that firms whose stock is traded publicly report their major shareholders each year; the reports identify all institutional shareholders, all company officials who own shares in their firm, any individual or institution owning more than 5% of the firm's stock. For many years, newly created companies were held but held initial