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The difference between authorized and outstanding shares

Accounting Tools

What are Authorized Shares? Authorized shares are the number of shares that a corporation is legally allowed to issue. The number of authorized shares is initially set in a company's articles of incorporation. What are Outstanding Shares? Outstanding shares have already been issued.

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The difference between stocks and bonds

Accounting Tools

Stocks are securities that represents a fraction of the ownership of the issuing corporation. They are issued to investors in the form of stock certificates. Bonds are a fixed obligation to pay that are issued by a corporation or government entity to investors. Stock may be classified as common stock or preferred stock.

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CPA pipeline problems: Insights from a state society CEO

Blake Oliver

In my latest Firm of the Future article , I share insights from a recent podcast interview with Jen Cryder, CEO of the Pennsylvania Institute of CPAs. This issue represents a crucial challenge for the accounting profession in the years ahead. You can read the full article for more details. Permalink

CPA 115
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Issued shares definition

Accounting Tools

What are Issued Shares? Issued shares are those shares that have been distributed to shareholders by a corporation. These shares are issued either as compensation paid to employees or suppliers , or to investors in exchange for cash. is Treasury Stock Included in Issued Shares?

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Stated value definition

Accounting Tools

Stated value is the amount assigned to a share of stock and recorded in the issuer's accounting records. This value is only assigned when a share has no par value. The amount of the stated value increases the capital stock account of the issuer when a share is issued. The stated value of each share is $0.10.

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Contingent issuance definition

Accounting Tools

A business may set up a contingent issuance in order to make it more expensive for a hostile acquirer to buy it; thus, an event such as an offer to buy a majority of the shares outstanding will trigger the automatic issuance of more shares to existing shareholders , which the hostile acquirer must then purchase.

CPA 40
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Scrip dividend definition

Accounting Tools

A scrip dividend is new shares of an issuer's stock that are issued to shareholders instead of a dividend. Scrip dividends may be used when issuers have too little cash available to issue a cash dividend, but still want to pay their shareholders in some manner. Impact on earnings per share. What is a Scrip Dividend?