实用会计英语课件 Chapter 18 Capital Stock.pptVIP

尚辅网 尚辅网 18-* 尚辅网 CAPITAL STOCK CHAPTER 18 尚辅网 Stock A unit of ownership in a corporation is called a share of stock. Stock certificate Stockowners Investment Corporation 尚辅网 Stock Shareholders’ meeting Board of directors Elect Appoint Corporate officers and managers They are responsible for the operations of the business. 尚辅网 Stock Corporation Issue Common Stock Preferred Stock 尚辅网 Common Stock If only one stock is issued by the corporation, it is called common stock. The common stockholders have the right to vote on certain general management matters. They have access to the financial report about corporation performance. A portion of dividends is issued by the company to its common stockholders. 尚辅网 Common Stock Common Stock The common stock means that all other creditors and priority claims are settled ahead of those of the common stockholders. 尚辅网 Preferred Stock Preferred stock may be issued so that the company can obtain money from investors who have different investment goals. At maturity date, the company will purchase back the preferred stocks. 尚辅网 Can be made callable Cannot be recalled Callable feature After the creditor After preferred stock Liquidation The first to be paid After preferred stock Declare dividend No Have The right to vote on important issues Preferred stock Common stock Differences The Difference between Common Stock and Preferred Stock The company can force the preferred shareholders to cash out of their position in exchange for a “call price” that is often set at a certain percentage of par value. 尚辅网 Issuance of Par Value Stock Stocks are required to have a designated par value. Par value “Legal capital” of the company represent When par value stock is issued, the appropriate capital stock account is credited for the par value regardless of whether the proceeds are more or less than the par value. 尚辅网 Issuance of Par Value Stock Suppose that Anderson Corporation