accting 301 ch9 min shen

accting 301 ch9 min shen - CH 9 Stockholders Equity Capital...

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CH 9 – Stockholders’ Equity Capital stock authorized —maximum number of shares that can be sold issued shares —authorized shares that have been sold to the public outstanding shares —issued shares currently being held by stockholders treasury shares —issued shares that were sold but have been subsequently reacquired by the corporation and are being held by the corporation for some purpose in the future unissued shares —authorized shares that have never been sold Types of stock Common stock: “real owners”, have rights to all net assets left over s Voting rights s Dividend set by board of directors s Preemptive right (non-dilution of ownership interest): if new shares are sold, current shareholders have the right to buy new shares to maintain their proportionate ownership in the firm. s Right to assets at liquidation: common stock is guaranteed neither dividends nor assets upon dissolution of the corporation. Common stockholders obtain the residual or “what’s left”. Preferred stock: preferred as to dividends and assets at liquidation
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This note was uploaded on 02/16/2011 for the course ACCOUNTING 301 taught by Professor Chen during the Spring '10 term at George Mason.

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accting 301 ch9 min shen - CH 9 Stockholders Equity Capital...

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