ACC 211 Lecture Notes - Lecture 4: Treasury Stock, Shares Outstanding, Issued Shares

• School: University of Miami
• Department: Accounting Business Administration
• Course: ACC 211
• Professor: Mathurin Klugy

Document Summary

Corporation: only business form the law recognizes as a separate entity, created by application to state gov (not fed), on approval the state issues a charter called articles of incorporation , Organizational structure: stockholders (owners of voting shares/people who invest in company) they elect board of directors (internal manager and external non-managers) they appoint president he employs vp production, marketing, finance, and controller. Authorized number of shares: the max number of shares of a corporation"s capital stock that can be issued as specified in the charter. Issued shares: the total number of shares of a stock that have been sold. # outstanding shares + # treasury = # issued shares. Outstanding shares: the total number of shares of stock that are owned by stockholders on a particular date. Treasury stock: stock that has been bought back by the company from the public, # issued shares - # outstanding = # treasury.