BLAW 308 Lecture Notes - Lecture 14: Capital Surplus, Debenture, Intangible Asset
Document Summary
When you miss 3 dividend payments to preferred stockholders they can elect a new board member(only time they generally vote unless its in the articles of incorporation) Authorized shares amount allowed in articles of incorporation. If you want shares to vote you go to issued and outstanding shares. Typically by your stock from other people who wanna sell their stocks. Debt securities: its essentially debt/a loan, but called a security because im offering it. Debenture: unsecured, long term, generally 10-30 yrs, interest rate attached. Indenture: contract that states the rights of the debenture holders, can be and has to be repaid at the end of the te as a loan a conversion feature as well like make it into common stock. Bonds : long term, secured, secured by collateral. If they don"t repay, bondholders can foreclose on the collateral. If sale of collateral doesn"t cover what they"re owed, they become general creditors for the remaining portion.
