ADMN 3321H Lecture Notes - Lecture 3: Lump Sum
30 Mar 2020
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Discuss characteristics of the corporate form of organization, rights of shareholders", and different types of shares. Explain how to account for issuance, reacquisition, & retirement of shares, stock splits and dividend distribution, e15-1, 15-2, 15-3, 15-5, 15-8. Understand the components of se and how they are presented- e15-12. Authorized capital: limit on authorized common shares. Shareholders have limited liability, owners of company do not. Public vs. private sector: public = government, has crown corporations that are used as a mechanism for delivering services, will have shares, canada post, etc. Issuance: basic, subscription, lump sum (issued with other securities, costs of issuance. Ipo first share issuance: company will get net proceeds of share issue, once shares are out there, they trade on secondary markets. Reacquisition and retirement: why do it, example: why buy back company"s shares in secondary market, surplus cash, counter dilutive effects of stock options, take company private.
