The Capitalization of Goodwill (Classic Reprint) - Softcover

Kemper Simpson

 
9781330273173: The Capitalization of Goodwill (Classic Reprint)

Synopsis

This book delves into the emergence of a unique type of industrial corporation in the United States during the early 20th century. These corporations, often bearing the names of their founders, transitioned from private businesses to publicly traded entities, marking a significant shift in the landscape of corporate finance. The author meticulously traces the evolution of these corporations against the backdrop of key historical events, including the rise and fall of trusts, the impact of anti-trust legislation, and the changing dynamics of investment banking. The analysis explores the motivations of both business owners and bankers in embracing this new model, shedding light on the economic and financial considerations that drove this trend. This book delves deep into the intricacies of stock flotation, capitalization principles, and the distinctive characteristics of preferred stocks issued by these industrial corporations. The author critically examines the economic implications of this phenomenon, particularly the separation of entrepreneurial and capitalist functions and the potential for over-capitalization of goodwill. By offering a comprehensive understanding of this pivotal period in corporate history, the book provides valuable insights into the evolving relationship between business, finance, and the stock market, ultimately raising questions about the long-term sustainability and social impact of such financial practices.

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