Stocks, Dividends and Stock Splits

Week Three Learning Team Reflection numerate extractions, Dividends, and Stock Splits During the side by side(p) segment of the paper the upshot will be about depots and how to calculate the lever. The first point needed to be mention is the association charter. When a Company is register with the surgical incision of state they create a charter. The charter indicates the numerate of downslope a company is allowed to convey (Weygandt, 2010). The information about the consequence or amount accepted sh ares for a company is commonly found in the stockholders equity persona of the balance sheet (Weygandt, 2010). Companies bottom have multiple types of stocks; the primary(prenominal) two are preferred stock and common stock. Stocks undersurface have two values the hold back value and the marketplace value. The book value is calculated by dividing the stockholders equity by the number of common shares outstanding. The market value reflects the judgment of the stockholders and potency investors about the companys potential for future clams and dividends (Weygandt, 2010). The board of directors can decide to have a bun in the oven dividends to the stockholders. Dividends are the diffusion of cash or stock to the stockholders in a proportional basis (Weygandt, 2010). This can be do annually or quarterly. There are three alpha dates required when a company decides to pay dividends.

These dates are closure date (board authorizes dividends), the routine single is the record date (register shareholders are eligible for dividends), and the ordinal one is the payment date (company issues dividends checks) (Weygandt, 2010). Dividends can b e expressed in two ways. The first one is! a lot of the par value of the stock. The second is as the dollar amount per share (Weygandt, 2010). A company needfully to meet the following criteria to issue dividends. Must have retain earnings, adequate cash, and it moldiness declare the dividends (Weygandt, 2010). Companies use the stock splits pickaxe to satisfy expectations of the stockholders without...If you postulate to get a full essay, straddle it on our website: OrderEssay.net

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