About Me

My photo
im Jaded..i create this blog to share my little knowledge about what i've been taken from my college life and my greatest frustration in life is to develop my own accounting software..

Thursday, August 18, 2011

Class of Stock and Terms

A corporation may issue two classes of stock, one is Common Stock, second is the Preferred Stock. When a single class of stock is issued, the stock is called common stock.

Commonn Stock are the ordinary stock of a corporation that entitles the owner to a pro rata share of the dividends without having priority or preference over any others stockholders or class of stockholders. A corporation may issue more than one class of stock. They may be identified as class A, class B and class F. in Philippines setting class A stock may be owned by filipino citizen only, while class B stock maybe owned both foreign and filipino.  

Preferred Stock are stock that are given certain preferences over common stock. These preferences may be: 

1. Preferred as to dividends
2. Preferred as to assets in case of liquidation

Term of Capital Stock

1. Authorized capital stock is a total amount or the numbers of share that a corporation is authorized by law to sell or to issue as state in the article of incorporation. This may be increase or decrease by making amendments to the articles of the incorporation.

2. Unissued Capital Stock is the amount of capital stock that remain unissued.

3. Subscribed Capital Stock  is the amount of shares contracted to be purchased and paid by subcribers.

4. Outstanding Capital Stock is the amount of shares issued and in the hands of stockholders.
5. Treasury Stock is the corporation own stock that has been issued and reacquired by the corporation but not calcelled.

6. Capital Stock Issued is the total amount of shares that is put into circulation or issued by a corporation. This consist of outstanding and treasury stock.

No comments:

Post a Comment