ACCT 2101 Chapter Notes - Chapter 10: Treasury Stock, Stock Split, Debits And Credits
Document Summary
Paid- in capital- amount stockholders have invested in the corporation. Retained earnings- amount of earnings the corporation has earned. Treasury stock- corporation"s own stock that it has reacquired, preferred or common stock that company has bought back. Authorized- shares available to sell (issued and unissued) Outstanding- shares held by investors (excludes treasury stock) Par value- legal capital per share of stock that"s assigned when the corporation is first established (what we think its worth when first made) No relationship to the market value of the common stock. Additional paid- in capital- issue common stock above par value. Usually have first rights to a specified amount of dividends. Do not get to vote that is job of common stockholders for the most part. Convertible- shares can be exchanged for common stock. Redeemable- shares can be returned to the corporation at a fixed price. Cumulative- preferred stockholders get everything from years passed.