ACC 100 Lecture Notes - Lecture 13: Initial Public Offering, Canadian Cancer Society, Tim Hortons
Document Summary
Corporation: legal entity that separate from its owners aka (cid:494)shareholders". Non-profit: doesn(cid:495)t earn money e. g canadian cancer society. Publicly held corporation: may have thousands of shareholders. Privately held corporation: closely held corporation that has few shareholders. Buy, own, sell things under the corporation(cid:495)s name and not the shareholder(cid:495)s. Shareholders cannot pay for company(cid:495)s liabilities from own personal assets (advantage) Authorized shares: total number of shares a company is allowed to sell. Issued shares: total number of shares that have been sold. Initial public offering (ipo): first time a corporation is offering shares to the public. Share capital: amount contributed to the corporation by shareholders in exchange for shares of ownership. Legal capital: cannot be distributed to shareholders. Retained earnings: earned capital that has been retained for future use. Can be use to distributed to shareholders as dividends/retained in the company for operating needs. No par value shares: shares that have not been assigned any specific value are normally issue.
