ADM 1340 Lecture Notes - Lecture 21: Initial Public Offering, Treasury Stock, Matching Principle
ADM 1340 verified notes
21/25View all
Document Summary
Small to large company, expand the company globally. In another sense, it is your shares . Authorized shares: maximum number of shares the company can issue to shareholders. (e. g. 5 million, you already issued 2 million shares (issued shares) the remaining 3 million is known as (unissued shares) Canada cannot hold its own shares, once it is cancelled for example, it becomes 3. 5 million shares. Ownership rights are known as the power shareholders have and are specified by voting, dividens (how much is distributed can be determined), liquidation (right to collect companies" assets). Such as , one can be accumulated dividens through shareholders) thus, we owe to the shareholders. Sometimes it is not accumulated, we do not have the obligation to pay the dollar. They can gain assets prior to shareholder means (known as liquidation preference) Other: it can be converted as the following two categories: redeem is the company and retract is the shareholder.