ch11_sp11 - BCOR 2000 Chapter 11 Reporting and Interpreting...

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BCOR 2000 – Chapter 11 Reporting and Interpreting Owners’ Equity
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Corporate form of Ownership Advantages of Corporate Form: Separate legal existence Limited liability of owners Transferability of ownership Ability to acquire capital Disadvantages of Corporate Form: Government regulations (Generally) additional taxes Professional managers
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Shares of Stock Authorized Shares - maximum number of shares a corporation may issue Issued Shares - number of shares that has been issued to the public Outstanding Shares number of shares held by stockholders Difference between number of shares issued and outstanding?
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Common Stock Initial Public Offering (IPO) First sale of common stock to the public Ex: Sell 100,000 shares of $0.01 par value common stock for $10 per share Cash 1,000,000 Common Stock 1,000 Additional Paid in Capital 999,000
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Common Stock Sale of stock in secondary markets Bought and sold among investors Stock issued as employee compensation Align employee interests to those of company Repurchase of stock - Treasury Stock Transactions Shares issued, repurchased, but not retired Treasury Stock does not have voting rights, rights to receive dividends, or liquidation privileges
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Treasury Stock Why acquire treasury stock? Stock option, restricted stock, and bonus plans
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This note was uploaded on 10/29/2011 for the course BCOR 2000 taught by Professor Brush during the Spring '07 term at Colorado.

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ch11_sp11 - BCOR 2000 Chapter 11 Reporting and Interpreting...

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