文档介绍：Learning Objectives
Power Notes
1. Nature of a Corporation
2. Stockholders’ Equity
3. Sources of Paid-in Capital
4. Issuing Stock
5. Treasury Stock Transactions
6. Stock Splits
7. Accounting for Dividends
8. Financial Analysis and Interpretation
Chapter F11
C11
Corporations: Organization, Capital Stock, Dividends
Characteristics of Corporations
Stockholders’ Equity
Issuing Stock
Treasury Stock Transactions
Stock Splits and Dividends
Dividend Yield on Common Stock
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Power Notes
Chapter F11
Corporations: Organization, Capital Stock, Dividends
Characteristics of Corporations
As a separate legal entity, a corporation may own and dispose of property in its own name.
The corporation ownership is divided into units called shares of stock.
The owners of the shares are called shareholders or stockholders.
Stockholders of a corporation have a limited liability.
Characteristics of Corporations
Stockholders
(owners of corporation stock)
Common Stock – the basic ownership of stock with rights to vote in election of directors, share in distribution of earnings, and purchase additional shares.
Preferred Stock – A class of stock with preferential rights over common stock in payment of dividends and company liquidation.
Classes of Stock
Characteristics of Corporations
Board of Directors
(elected by stockholders)
Stockholders
(owners of corporation stock)
Characteristics of Corporations
Officers
(selected by board of directors)
Board of Directors
(elected by stockholders)
Stockholders
(owners of corporation stock)
Characteristics of Corporations
Employees
(hired by officers)
Officers
(selected by board of directors)
Board of Directors
(elected by stockholders)
Stockholders
(owners of corporation stock)
Forming a Corporation
First step is to application of incorporation with the state.
Because state laws differ, co