Stocks and Bonds
Prepared by;
-OLIVE DUENAS
-PRINCESS DELOS SANTOS
-JOYCE DOMINGO
-ARVYNNE FAJARDO
Chapter 8: Corporate Stocks
3 Classification of Capital Requirements 1. short term 2. intermediate-term 3. long term
Stock Financing-when shares of stock are sold to raise funds for the long term financing requirements of the firm.
Capital Stock, Dividends, and Retained Earnings
CAPITAL STOCK- interest of the owners of a corporation. -Issued Stock- portion of the authorized stock has been issued and sold. - Unissued Stock- those which are not yet issued.
DIVIDENDS- the net income of a corporation maybe distributed to the stock holders.
There are times, when the profits are not declared as dividends. Instead, it is RETAINED in the company’s coffers for use in some of its capital financing requirements. This is reported as RETAINED EARNINGS in the company’s balance sheet.
CLASSES OF CORPORATE STOCKS
2 Major Classes * Common Stock * Preferred Stock
COMMON STOCK- class of stock issued by all corporations and which presents the real equity capital. It has a residual claim to earnings and assets and which carries the risk of business success or failure.
Varieties of Common Stock 1. Classified Common Stock 2. Deferred Stock 3. Voting Trust Certificate 4. Guaranteed Stock 5. Debenture Stock
Classified Common Stock-Common Stock maybe classified to suit various requirements of issuing firm and investors.
Deferred Stock- Minor type of issue which entitles the holder to receive dividends, and in the event of dissolution, assets, after the common stockholders have been paid.
Voting Trust Certificates- Given to trustees of a corporation when the activities of the corporation are entrusted to them.
Guaranteed Stocks-Stock of corporation wherein the payment of dividends is guaranteed by another corporation.
Debenture Stock- not stock in the real sense, but a debt issue similar to debenture bonds. They are fixed interest securities issued by limited
-OLIVE DUENAS
-PRINCESS DELOS SANTOS
-JOYCE DOMINGO
-ARVYNNE FAJARDO
Chapter 8: Corporate Stocks
3 Classification of Capital Requirements 1. short term 2. intermediate-term 3. long term
Stock Financing-when shares of stock are sold to raise funds for the long term financing requirements of the firm.
Capital Stock, Dividends, and Retained Earnings
CAPITAL STOCK- interest of the owners of a corporation. -Issued Stock- portion of the authorized stock has been issued and sold. - Unissued Stock- those which are not yet issued.
DIVIDENDS- the net income of a corporation maybe distributed to the stock holders.
There are times, when the profits are not declared as dividends. Instead, it is RETAINED in the company’s coffers for use in some of its capital financing requirements. This is reported as RETAINED EARNINGS in the company’s balance sheet.
CLASSES OF CORPORATE STOCKS
2 Major Classes * Common Stock * Preferred Stock
COMMON STOCK- class of stock issued by all corporations and which presents the real equity capital. It has a residual claim to earnings and assets and which carries the risk of business success or failure.
Varieties of Common Stock 1. Classified Common Stock 2. Deferred Stock 3. Voting Trust Certificate 4. Guaranteed Stock 5. Debenture Stock
Classified Common Stock-Common Stock maybe classified to suit various requirements of issuing firm and investors.
Deferred Stock- Minor type of issue which entitles the holder to receive dividends, and in the event of dissolution, assets, after the common stockholders have been paid.
Voting Trust Certificates- Given to trustees of a corporation when the activities of the corporation are entrusted to them.
Guaranteed Stocks-Stock of corporation wherein the payment of dividends is guaranteed by another corporation.
Debenture Stock- not stock in the real sense, but a debt issue similar to debenture bonds. They are fixed interest securities issued by limited