FINE 2000 Lecture Notes - Supermajority, Libor, Subordinated Debt
Document Summary
Issued shares: shares that have been issued by the company. Outstanding shares: shares that have been issued by the company and are held by investors. Authorized share capital: maximum number of shares that the company is permitted to issue as specified in the firm"s articles of incorporation. Par value: value of security shown on certificate common shares mostly do not have a par value. Addition paid-in capital: difference between issue price and par value of stock, also called capital surplus/contributed surplus/paid-in surplus. Retained earnings: earnings not paid out as dividends. Foreign currency translation adjustments can sometimes translate to losses due to currency conversion. Net common equity= common shares + retained earnings + foreign currency translation adjustment gains. It was an arbitrary set number and almost always lower than the actual sale price of the new shares, but today. Equals the total amount contributed directly by common shareholders when the firm issued new stock, and.