ACC 210 Lecture Notes - Lecture 11: Initial Public Offering, Dividend, Stock Transfer Agent

41 views19 pages
School
Department
Course

Document Summary

Bondholders do not have voting rights, so current owners (stockholder) retain full control of the company. Bond interest is deductible for tax purposes; dividends on stock are not. Return on common stockholders" equity may be higher. Although bond interest expense reduces net income, return on common stockholders" equity often is higher under bond financing b/c no additional shares of common stock are issued. Organized under the laws of a particular state. Stockholders" liability limited to amount of investment. Define legal capital for each share of stock. A stockholder can lose no more than the amount invested. Ability to raise capital and transfer ownership. Attracting outside investment and transferring ownership is easier for a corporation. Corporate earnings are taxed twice at the corporate level and individual stockholder level. Federal and state gov"ts impose additional reporting requirements. Selling stock to public (ipo or later offerings) Reinvesting profits back into company or pay back profits to owners in the.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions