Stocks, Dividends and Stock Splits

Week Three Learning Team Reflection organise extractions, Dividends, and Stock Splits During the side by side(p) segment of the paper the exit will be about depots and how to calculate the take to be. The first particular needed to be mention is the conjunction charter. When a Company is register with the surgical incision of state they create a charter. The charter indicates the numerate of inception a company is allowed to snitch (Weygandt, 2010). The information about the consequence or amount countenance sh atomic number 18s for a company is commonly found in the shareholders equity persona of the balance sheet (Weygandt, 2010). Companies arse have multiple types of stocks; the primary(prenominal) two are preferred stock and common stock. Stocks mint have two values the take 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 judgm ent of the stockholders and capability investors about the companys potential for future clams and dividends (Weygandt, 2010). The board of directors can decide to relent dividends to the stockholders. Dividends are the diffusion of cash or stock to the stockholders in a proportional basis (Weygandt, 2010). This can be through annually or quarterly. There are three beta dates required when a company decides to pay dividends.

These dates are resolving power date (board authorizes dividends), the routine star is the record date (register shareholders are eligible for dividends), and the ordinal one is the payment date (company iss ues dividends checks) (Weygandt, 2010). Div! idends can be 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 necessitate to meet the following criteria to issue dividends. Must have retained earnings, adequate cash, and it moldiness declare the dividends (Weygandt, 2010). Companies use the stock splits alternative to satisfy expectations of the stockholders without...If you postulate to get a full essay, swan it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay