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Special Report on

Par Value of Common Stock

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The Capital Stock account represents “stated capital.” It is the par or stated value of all shares issued and outstanding. The “par value” of a share of stock is arbitrarily assigned, and it has no relationship to the share’s fair market value or even to the amount received for it by the corporation in its Initial Public Offering. The par value associated with most capital stock issuances is very low ($1, $5, $10). Capital stock at par value is also called “legal capital.” Legal capital cannot be distributed to shareholders as dividends and it represents the maximum liability of the shareholders, because as long as the par ...
is a special equity security that has properties of both an equity and a debt instrument and is generally considered a hybrid instrument. Preferreds are senior (i.e. higher ranking) to common stock , but are subordinate to bonds . Preferred stock usually carries no voting rights, but may carry priority over common stock in the payment of dividends and upon liquidation . Preferred stock may carry a dividend that is paid out prior to any dividends being paid to common stock holders. Preferred stock may have a convertibility feature into common stock. Terms of the preferred stock are stated in a "Certificate of Designation".
The Top 5 XBRL Tagging Questions from Rivet Customers in April ...
My name is Deb Griffith and I am a member of our Professional Services Team here at Rivet Software. All day long I answer the phone helping our customers with their XBRL filing process. Below is the Top 5 List of Customer Calls I have been answering in April. For further details see our “Customer Support” tab at . Deb Griffith’s Top 5 List of Customer Calls: #5 How do I markup my parentheticals? If you have the line item, “Accounts receivable (less allowances for doubtful accounts of $169 in 2008 and $136 in 2007)” you will need to tag up ... market research, surveys and trends
us steel announces sweeping modernization scheme
Myron C. Taylor, Chairman of U. S. Steel Corporation, today announced the long awaited plan for completely modernizing the world's largest industrial enterprise. Contrary to expectations, no changes will be made in the company's manufacturing or selling policies. Instead, the bookkeeping system is to be entirely revamped. By adopting and further improving a number of modern accounting and financial devices the corporation's earning power will be amazingly transformed. Even under the subnormal conditions of 1935, it is estimated that the new bookkeeping methods would have yielded a reported profit of close to $50 ... market research, surveys and trends


... in a U.S. state where capital is defined as the par value of common stock? .... Investors expect earnings to grow at a 5 percent annual rate in perpetuity ... Earnings next year are expected to reach $31.5 million, so if it pays out ... industry trends, business articles and survey research
NeoMedia majority debt holder sued for unlawful short-swing ...
NeoMedia shareholder William Klawoon is suing the company�s principal investor and majority debt holder Yorkville Advisors. In January Mr. Klawoon wrote a letter to Neo Media demanding that the company sue Yorkville for not reporting profits from short-swing trading. �[Yorkville] has fared quite well from its �investment� in NeoMedia having purchased over $50 million in NeoMedia securities and made untold millions in profits,� the lawsuit filing says. Here is the letter the shareholder wrote to NeoMedia in January: A derivative suit was filed by Mr. Klawoon on behalf of NeoMedia in order to recover the short-swing profits made ... industry trends, business articles and survey research
OceanFirst Financial Corp. Announces Growth in Deposits, Loans, Revenue and ...
the holding company for OceanFirst Bank, today announced that diluted earnings per share increased to $.27 for the quarter ended June 30, 2010 as compared to $.24 in the prior linked quarter and $.26 for the corresponding prior year period. Other growth highlights for the quarter ended June 30, 2010 include: -- Deposits increased $158.9 million during the quarter of which $156.6 million was growth in core deposits, defined as all deposits excluding time deposits. -- Loans receivable, net increased $27.3 million during the quarter of which $26.2 million was growth in commercial loans. -- Total ... market trends, news research and surveys resources
Savannah Bancorp Reports Second Quarter Loss of $62000
reported a net loss for the second quarter 2010 of $62,000 compared to net income of $106,000 in the second quarter 2009. Net loss per diluted share was 1 cent in the second quarter of 2010 compared to net income per diluted share of 2 cents in 2009. The quarter over quarter decline in earnings results primarily from a higher provision for loan losses. Pretax earnings before the provision for loan losses and gain/loss on sale of securities and foreclosed assets were $3,653,000 in the second quarter 2010 compared to $3,946,000 in 2009. Other growth and performance ratios are included in the attached financial highlights. On June ... market trends, news research and surveys resources


Chapter 11 - Accounting for Equity
How would you journalize Hydro-Slide Inc's issue of 1000 shares of $1 par value of common stock at par for cash. Acct Dr. Cr. Cash 1000. Common Stock 1000 ... technology research, surveys study and trend statistics
Interpretive Letter 1112
Feb 17, 2009 ... Subject: Issuance of Common Stock Below Par Value .... OCC prior to considering a sale of common stock at a price below par value. ... technology research, surveys study and trend statistics
Stock Transactions
When corporations issue stock they record the cash (or other asset) received and credit the common stock account at the par value (an amount established in the corporate charter). Any excess received above the par value is credited to "Paid-in-Capital in Excess of Par". Example: ABC Inc. issued 1,000 shares of $10 par stock at $14 per share. Debit Credit ------- -------- Cash 14,000 Common Stock 10,000 Paid-in-Capital in Excess ...
True or False - Some accounting questions I need help with ...
3. The issuance of common stock affects both paid-in capital and retained earnings. FALSE - depending on what it's issued for, it could affect one or the other, but will never affect both at the same time. 4. If the dividend amount of preferred stock, $50 par value, is quoted as 8%, then the dividends per share would be $4. TRUE 5. The par value of stock is an arbitrary per share amount defined in many states as legal capital. TRUE 6. When the board of director's declares a cash or stock dividend, this action decreases retained earnings. TRUE 7. Cash dividends become a liability to a corporation on the date of ...
Stock Dividends - Paid-in capital in excess
Please show me how to calculate Paid-in capital in excess of par-preferred & paid-in capital in excess of par-common for the following problem: Paid-in capital: Preferred stock, 6%, $50 par, 2,000 shares authorized, 2,000 shares issued = $100,000 Paid-in capital in excess of par-preferred = ? Common stock, $1 par, 10,000,000 shares authorized, 2,000,000 shares issued=2,000,000Paid-in capital in excess of par-common = ? Total paid-in capital = 21,105,000 Additional paid-in capital is for the amount received over the par value of your common stock. for example you issue 10 shares of $20 common stock for $50 a share. The ...