对外经贸会计课件_专业英语Chap011.ppt

Corporations Advantages of Incorporation Disadvantages of Incorporation Publicly Owned Corporations Face Different Rules By LAW, publicly owned corporations must: Prepare financial statements in accordance with GAAP. Have their financial statement audited by an independent CPA. Comply with federal securities laws. Submit financial information for SEC review. Formation of a Corporation Each corporation is formed according to the laws of the state where it is located. The application for corporate status is called the Articles of Incorporation. Rights of Stockholders Rights of Stockholders Rights of Stockholders Rights of Stockholders Rights of Stockholders Functions of the Board of Directors Functions of the Corporate Officers Stockholders’ Equity of a Corporation Authorization and Issuanceof Capital Stock Authorization and Issuanceof Capital Stock Authorization and Issuanceof Capital Stock Stockholders’ Equity Stockholders’ Equity Issuance of Par Value Stock Issuance of Par Value Stock Issuance of Par Value Stock Preferred Stock Cumulative Preferred Stock Stock Preferred as to Dividends Stock Preferred as to Dividends Other Features of Preferred Stock Preferred Stock Market Value Market Price of Preferred Stock Market Price of Common Stock Book Value per Shareof Common Stock Stock Splits Companies use stock splits to reduce market price. Outstanding shares increase, but par value is decreased proportionately. Stock Splits - Example Treasury Stock Treasury Stock - Example Treasury Stock - Example Stockholders’ Equity - Presentation End of Chapter 11 Preferred stock is a separate class of stock that typically has priority over common stock in dividend distributions and distribution of assets in a liquidation. Preferred stock usually has a stated dividend that is expressed as a percentage of its par value. It normally does not have voting rights and is often callable by the corporation at a stated value. Let’s take a closer look at the cumulative dividend