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I am extremely excited to announce my new e-book, SOLID STOCK SELECTION is now available !! Click here to find out more.
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July 9, 2006 My CEO can beat up your CEO... When you are looking to do some Due Diligence on a company you may want to check out the history of the people in charge. Have they had success in past ventures? Do they have a history with the industry? What experience do they bring to the table? Can they take this company to a new level? To start out with, what the heck do the initials stand for and what do they really mean? Is a CEO the same thing as a president? There are a lot of titles in corporate america and they might throw you for a loop. A Chief Executive Officer,a Chief Operating Officer, and a Chief Finanacial Officer might all sound similar, and sometimes one person may have multiple titles, but the functions are different. All of these positions are usually management personal who are actively invovled in the day to day operations of the corporation. I'll list a few of these management positions and define what their functions usually are. A Chief Executive Officer (usually abbreviated CEO) is often also the president of a corporation. He or she is in charge of overseeing the operations of the entire corporation. They are also on the Board of Directors. (The board of directors is a group not actively invovled in day to day operations, but handles company policies and direction. They would decide on issueing stock or dividends and items of that nature.)The CEO is a bridge between the Board and the management and is responsible to implement and uphold the Board's decisions. The Chief Operating Officer (COO) is more involved in the operation of the corporation in a 'hands-on" role. He would look after the actual production function, sales, marketing, etc. The COO is responsible for the ongoing workings of the various components. The Chief Financial Officer (CFO) can be thought of as the 'treasurer' of the corporation. The CFO is responsible for everything involving financial issues. (Uh, yeah, that's pretty much stated in the title) Budgeting, payments, balancing the books, inventory levels, and the general financial health of the corporation. The CFO often will present this information at Board meetings, stockholder meetings, or to the Securities Exchance Commission. This information is also presented in the Annual reports. Many of the senior members of management will also be granted the title of a Vice Presidency. This does not indicate succession should the President move on, but indicates a high level of responsibility. If you are thinking of investing in a company, it is a good idea to try to get to know management and find what experience they are bringing to the table. That’s all for this week, Thank you, Rob
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Want a scholarship into the Millionaire Mind Intensive worth $2590? http://www.secretsofthemillionairemind.com The columns, articles, message board posts and/or any other features provided on Wealth Training Source are provided for personal finance and investment information and are not to be construed as investment advice. Under no circumstances does the information in this content represent a recommendation to buy, sell or hold any security. The views and opinions expressed in an article or column are the author’s own and there is no implied endorsement by Robert Britt of any advice or trading strategy copyright Robert E. Britt 2006 |
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