Chapter 11 notes.docx - 1 Equity Financing a Authorized...

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1. Equity Financing a. Authorized stock i. The maximum number of shares of stock that a company could issue ii. (Generally this is very large amount and company usually does not plan to issue the amount) b. Issued stock i. The actual stock that still out in the public ii. Note: This is the only stock that companies can pay dividends on c. Treasury Stock i. Stock that was issued that has since been purchased ii. Note: TS is not retired so it can be reissued d. PAR VALUE DOES NOT EQUAL MARKET VALUE 2. Journal entry will always be from now on a. Always record common or preferred stock AT THE PAR VALUE
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