diss2 - value of their stock • Would it be better for a...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Why is there a difference between issued and outstanding stock? Issued stock is includes all stock that has ever been sold. When you sell stock above par value, why can you not have a gain instead of having to put it in paid-in capital in excess of par value? Treasury stock cannot be a good name for ownership of stock in our own company. Can we call it by some other name, and why can we not record a gain/loss on the sell of treasury stock? Treasury stock is not an asset, but I do not understand why. Can you explain? Does common stock always have to be sold before preferred stock? Why is the normal balance for treasury stock a debit? By using par or stated value, aren’t corporations just playing around with the
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: value of their stock? • Would it be better for a company to issue 10 shares of $1,000 par value stock or 10,000 shares of $1 par value stock? • Why can’t you pay dividends on treasury stock? • Why would a company consider issuing preferred stock? If it needs to raise capital, wouldn’t it be better just to borrow the money from a bank? • If “dividends in arrears” means we still owe the preferred shareholders a dividend, why are we not required to book it as a liability? After all, isn’t it a debt or obligation of the company? • What is the most number of shares a company can issue? Is there a limit on the number besides what is listed as authorized stock?...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online