BUS 251 Chapter Notes - Chapter 11: Treasury Stock, Retained Earnings, Authorised Capital

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 251
• Professor: Susan Bubra

Document Summary

Purchase share directly: company or other investors. Purchase shares indirectly: mutual fund => own share of various companies. Rights and privilege of owned shares => return + risk. Accumulated other comprehensive income aoci: reevaluation => loss of gain not related to third part => transfer to net income or retained earnings eventually => expect uncertainty. Contribute surplus: repurchase share with less than the amount issued. Article of incorporation: business type, board of directors, management, authorized shares. Initial public offering ipo: first time the company issues shares on public se. Issued shares: sold and issued by company => legal capital: cash received => must keep intact. Outstanding shares: issued shares remain in the possession of shareholders outside company => pay dividends. Treasury shares: issued and repurchased but no longer outstanding, no more reissued, no pay dividends. Cash surplus => reduce share outstanding => higher earnings per shares => increase share price. Par value shares: cs + contributed surplus.