This module legal aspects of corporate finance provides an understanding of the essential elements of the legal principles and institutions governing corporate finance at the national and international level. The materials in this book are those dealt with in my course in legal aspects of corporate finance as the title suggests this book is for the most part concerned with the legal aspects of corporate finance particular emphasis is placed upon the nature of the legal relationships created by corporate finance transactions indeed the matters . In exchange for consideration usually cash the purchaser acquires stock in the corporation this stock may give the owner a share in earnings the right to transfer the stock and depending on the size of the corporation and the number of shares power to exercise control other methods of corporate finance include bank financing and bonds. Chapter 26 legal aspects of corporate finance 261 general sources of corporate funds discuss the main sources for raising corporate funds examine the reinvestment 262 bonds discuss the basics of corporate bonds review the advantages and disadvantages to the corporation of issuing 263
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