share capital, subscription of shares, and treasury shares

Q: What is a share? What is a bond? What is the difference between holding the share of a company…

A: Shares are the part of Equity of the company. Bonds are the part of liability for the company.

Q: Which of the forms of ownership obtain it's capital by inviting the public to buy shares

A: The money raised by selling shares is referred to as a company's share capital. The maximum amount a…

Q: What are some reasons corporations issue stock dividends?

A: Stock Dividends: It refers to the payment of dividends by a company to its existing shareholders, in…

Q: Distinguish between paid-in capital and retained earningsof a corporation. Why is such a distinction…

A: Paid-in capital and retained earnings are the two main categories of stockholders' equity.

Q: What are the advantages of holding stock in a company versus holding bonds issued by the same…

A: Stock is a security that represents the ownership of the fraction of a corporation. Bond is a debt…

Q: From a corporation’s point of view, how does preferred stock differ from common stock?

A: Difference between Preferred and Common Stock from a corporation's point of view:   1. Preferred…

Q: If a corporation when formed sets a par value for its shares low and issue common  stock for a price…

A:

Q: what are major categories of debt and stock for a corporation.

A: Several businesses and people employ debt to finance major purchases that they would not be able to…

Q: Exactly when does a corporation decide to pay out a cash dividend?

A: -CASH DIVIDEND:  Cash dividends are considered Assets because they increase the net worth of…

Q: How does the deductibility of interest and dividends by the paying corporation affect thechoice of…

A: A way to finance the capital requirement by the category of ownership in a company that has the last…

Q: How treasury shares are measured and accounted for in the books of corporation?

A: Treasury stock is that stock that is reacquired from the shareholders by the issuing company to…

Q: What are the relative benefits and drawbacks of selling bonds, common stock, and preferred stock…

A: The main objective of the company is to reduce the overall cost of issuing the capital. The Company…

Q: What are treasury shares? Why do corporations have treasury shares.

A: Shares:- Shares shows the ownership of equity in a firm, that are purchased by an investor who…

Q: Shares are equity, but to the firm is a liability for the investor is an asset. What is the shares…

A: Equity is amount that a company has got from its investors and it should be returned to the…

Q: Which characteristic of a corporation limits a stockholder's loss to the amount of his or her…

A: One of the type of legal structure of business operation that declares the business as a separate,…

Q: What is Treasury share? What are the reasons that the corporation for reacquisition of shares?

A: Treasury shares are the shares that are brought back by the issuing entity from the open market from…

Q: What is the purpose of a stock dividend or stock split? How does a stock split impact a company's…

A: A stock dividend is a dividend payment that is made in shares to its shareholders instead of cash…

Q: If the corporation when formed sets a par value for its shares low and issue common   stock for a…

A: Corporation can issue at its stock at par value, more than par value or below par value. For…

Q: xplain the methods of acquiring and accounting for treasury share

A: Treasury shares are shares re acquired or bought back by the company from its shareholders . The…

Q: What is Bonds / Preference Shares and Ordinary Shares

A: Bond, preference shares and ordinary shares are the financial instrument issued for purpose of…

Q: 2. Which of the following is a share of owners in a corporation? B. capital gain A. bond C. dividend…

A: The bond represents a loan lend by an investor to the borrower. It is fixed-income security. The…

Q: What do you call those investors who buy shares of stocks of a company and become legal part owner…

A: The company includes owner and creditor during the year. Owners are the investors who invest into…

Q: For a corporation, equity capital comes in two forms. What are they?

A: Every company has two major types of financing one is through raising equity shares and the other is…

Q: If the corporation when formed sets a par value for its shares low and issue common stock for a…

A: Common stock: These are the shares that are issued by the company against the money which is…

Q: What factors to determine in choosing either Bonds /  Preference Shares or Ordinary Shares  as the…

A: Capital Structure is the structure of the firm capital which consists the mix of debt , equity and…

Q: Do preferred stockholders receive the share of the company earnings before or after bond interest is…

A: Preference Stockholders are entitled to receive fixed amount of dividend from the company and enjoys…

Q: What is advantges and dis advantge of shares repurchacse to the company

A: A share repurchase is also known as buyback. Here the concerned company buys back its own shares…

Q: Define treasury stock. Why might a corporation acquire treasury stock? How is treasury stock shown…

A: Treasury stocks are the shares which are reacquired by the company that are already issued to the…

Q: How much is the authorized share capital? How much is the issued share capital? How many shares of…

A: The authorized share capital is the maximum amount of share capital that the company is authorized…

Q: A corporation may raise funds by offering shares of stocks to investors.  Express your idea or…

A: A company can raise funds by issuing debt or shares. Both debt and shares have advantages and…

Q: Is there a type of stock preferable over the other? Should a corporation also utilize borrowing if…

A: Equity Stock represents the equity shares of a company. Equity shares are the part of company owned…

Q: Treasury shares are shares heid as an investment by the treasurer of the corporation. shares held as…

A: Shares are the units of stock issued by a company to the general public in order to raise money from…

Q: Why does a One Person Corporation shall not be required to have a minimum authorized capital stock?

A: Step 1 A one-person corporation shall not be required to have minimum authorized capital stock,…

Q: What are the distribution of either cash or stock to shareholders by a corporation called?

A: A corporation distributes the amount of its earnings in form of cash or stock to its investors or…

Q: Discuss the impact of issuance of share dividends to the existing shareholders. Knowledge)

A: A stockholder is a person who owns stock in a company. Stockholders own a portion of the company. If…

Q: What do you mean by private placement of shares? What are the options for a company?

A: It happens when an organization makes a contribution of securities to an individual or a group of…

Q: Discuss the various reasons why one corporation might invest in the stock of another corporation?

A: Investing in common stock: When the investment is made in common stock the investor gets some rights…

Q: What factors to be considered in choosing either bonds, preference shares or ordinary shares as the…

A: A company can raise capital by various means – by issuing bonds or by issuing preference shares or…

Q: 2. represent partial ownership in the corporations that issue them. retained earnings O capital…

A: Companies fulfill the needs of financing from various sources of financing such as equity and debt.…

Q: 3. What are the stages in organizing a corporation? 4. What are the basic rights of a shareholder?…

A: 1) To decide the type of corporation that needs to be created 2) Corporation should have a…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.