CEU Electronic Theses and Dissertations, 2016
| Author | Bechvaia, Tatia |
|---|---|
| Title | Role of Preferred Stocks in Corporate Finance: Lessons for Georgia in Light of US Experiences |
| Summary | Transparent, accurate and flexible laws are one of the first steps in attracting potential investors to a country; therefore the laws governing business should be constantly modified to ensure that it reflects modern tendencies which boosts the market economy of a country to a higher level. In corporate law, one of the empirically tested modes of investment is a preferred stock, which has a long and rich history in the US, but unfortunately this is not the case in Georgia. Thus, the purpose of this thesis is to address the role of preferred stocks in corporate finance by illustrating its importance in business reality for Georgia. This paper makes a comparative analysis of the US and Georgian legal systems and provides recommendations on how the basic concept of preferred stocks can be exported from the US to Georgia and what are the benefits that Georgia can enjoy in light of US experience. This thesis suggests, that even though preferred stocks in Georgia are regulated and known, they are rarely used. Further, it shows that the law governing preferred stock concept in Georgia lacks transparency and needs comprehensive revision. Thus this paper provides valuable guidance concerning the issuance of preferred stocks and their importance for prospective investors and stresses why Georgia should make use of this type of equity security and how the country's economic growth will benefit from utilization of this well established investment vehicle of corporate law. |
| Supervisor | Tajti, Tibor |
| Department | Legal Studies LLM |
| Full text | https://www.etd.ceu.edu/2016/bechvaia_tatia.pdf |
Visit the CEU Library.
© 2007-2021, Central European University