What is a share of common stock and what rights does it convey to you when you buy a share of stock? How does that compare when you buy a unit of "virtual currency"? Think about the rights received from each of these assets.

Q: why does the value of a share of stock depend on dividends?

A: Dividend on stocks: Dividend is the proportion of profit that the company distributes among its…

Q: How would you change your holdings of the two stocks (i.e., for each, would you sell or buy more)?…

A: In order to evaluate which stock to buy more or less given the information one can find the Capital…

Q: When can shares be Forfeited?

A: Shares are issued by the company to the public for ownership in the company The shares have an…

Q: How do you calculate earnings per share on common stock?

A: Earnings per share (EPS): The amount of net income available to each shareholder per common share…

Q: What are the considerations that may be received in exchanged for share capital? What are the…

A: The money a firm raises by issuing common or preferred shares is referred to as share capital. With…

Q: - a future market transaction  - a secondary market transaction -it is primary market transaction…

A: A security market is a place where security( stock and bond) is traded. Here price of the security…

Q: what is the price of company stock? iS IT WORTH TO INVEST IN? EXPLAIN

A: We are given some financial ratios  for 3 consecutive years for a company based on which we need to…

Q: Before you put your money down and purchase a stock, what should you know about it?

A: An investor must consider certain factors which are necessary to make decision whether to buy the…

Q: How do cash dividends affect the realized rate of return from investing in shares of common stock

A: Cash dividends are distribution of profits earned by a company is cash. These are inflows for…

Q: Write Example for equity dividend?

A: Answer: Equity dividend is the dividend that is paid to equity shareholders.

Q: Why might a stock dividend or a stock split be of limited value to an investor?  What about a stock…

A: Stock Dividend:When the corporation paid a dividend to stockholders in the form of stock instead of…

Q: What is the difference between a cash dividend and a stock dividend?

A: Cash dividends are the amount of cash distributed to stockholders by a company out of its earnings,…

Q: Why is the ex-dividend date important to stockholders? If a stock is sold on the ex–dividend date,…

A: The ex-dividend date is important to stockholders as it is the date on/after which a new buyer of…

Q: How will you compute outstanding shares? Does it include share premium and retained earnings?

A: Outstanding shares means common shares of the business as on a particular date. For example, a…

Q: What is a stock dividend?  How does a common stock dividend distributed to common stockholders…

A: When dividend is issued to stockholders in form of stock instead of cash then it is called as Stock…

Q: How do you calculate outstanding shares of stock?

A: Outstanding stock refers to the number of shares that are held by the existing stockholders of the…

Q: What benefits might a company gain from having its shares listed on a stock exchange? +resources

A: Companies raise equity financing by listing shares on stock exchange.

Q: When purchasing a company's stock, what would be your primary factors in valuing that stock?

A: Common stock: Common stock is the cash raised by the company by issuing common or ordinary shares to…

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: What is the character of Jack's distribution (amount of dividend, return of capital, capital gain)?…

A: Stocks can be defined as the portion of ownership in the capital of the corporation. It can be in…

Q: When an investor uses the equity method to account for investments in common stock, cash dividend…

A: 1. Equity method - Under an Equity method of accounting following entries and changes are made every…

Q: How will you distinguish a small from large share capital (stock) dividend?

A: Dividend is the share or part of profits that is being distributable to the shareholders of the…

Q: what is the value of Maxwell Mining's stock?

A: The constant growth model is a method for valuing the share price of a stock. It calculates the…

Q: What do you know about stock exchange, discuss its main functions. How to invest in the stock…

A: Stock exchange is an integral part of the capital market and financial market across the globe.

Q: Why would a firm repurchase its stock? Discuss.

A: Repurchasing shares: It is also called buyback of shares. The company purchases its previously owned…

Q: What is a stock exchange? How does it help investors?

A: Stock Exchange: It is a place where securities like stocks and bonds are traded. Usually, bonds are…

Q: y Treasury stock, what happens to your assets and equity when you sell it?

A: Treasury stock are own outstanding stock which company can buy or sell in the market.

Q: How does declaring a stock dividend affect the corporation’s assets, liabilities, and total equity?…

A: Stock dividends:   Stock dividends are dividends paid in the form of additional stock rather than in…

Q: How is the realised percentage return from investing in a share calculated? A. The cash flows…

A: Realized percentage return is the return which the investors gets over a period after considering al…

Q: What effect does the stock split have on Nike’s assets? Its liabilities? Its shareholders’ equity?

A:

Q: When is the equity method used when purchasing another company's stock? How is it recorded?

A: Companies with huge cash balance tend to purchase another company's stock to excercise significant…

Q: Access the glossary (“Master Glossary”) to answer the following. a.    What is a “convertible…

A: Describe the meaning of the following: a. Convertible securities: Convertible security is a…

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: value a share of common stock.

A: Common stock is the ordinary shares issued by the company. It shows the equity that offers the share…

Q: Which is better, a stock dividend or a cash dividend?

A: Stock dividends refer to paying additional units of shares instead of cash. Stock dividends are paid…

Q: Who actually owns stock, how is the price of common stock based and how is the price of bonds

A: When company issues the stock of company in the market they are bought by all interested…

Q: common stock, and treasury stock explain

A: Common stock is the stock of the company which are different from preference shares. It represents…

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.