MGMT 20000 Lecture Notes - Lecture 28: Stock Split, Retained Earnings
13 Apr 2019
School
Department
Course
Professor
Document Summary
Earnings retained in the corporation and not paid out as dividends. Equals all net income less all dividends, since the company began operations. Accumulated deficit: a debut balance in retained earnings. Distributions by a corporation to its stockholders. A change in a quarterly or annual cash dividend paid by a company can provide useful information about future prospects. Not all companies pay dividends; for example, growth companies prefer to reinvest earnings rather than distribute them. Declaration date-date on which board of directors declares the cash dividend to be paid. Record date-specific date on which the company will determine who will receive the dividend (registered owners of stock) Payment date-date of the actual cash distribution. Authorized (maximum # of shares to issue) Outstanding (# of issued shares less shares bought back) Treasury (# of shares bought back by company) Explain the effect of stock dividends and stock splits. Stock dividends-additional shares of a company"s own stock to stockholders as dividends.
