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Equity - Coggle Diagram
Equity
Dividend
- distribution, made from retained earnings
- may be restricted
Liquidating dividends
- dividend declare exceed retained earnings
- consider return the investment
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Property dividends
dividend payable in property, merchandise or investment
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Scrip dividends
gives shareholders a promise to pay dividends at a later date, instead of paying cash immediately.
Cash dividends
3 important dates:
- date of declaration
- date of record
- date of payment
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Stock dividend
- gives additional shares of its own stock to existing shareholders
- no impact on total stockholder's equity; reallocation of retained earnings to paid in capital
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Preferred stock
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Preference in liquidation
-> creditor, preferred then common
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Warrants (chứng quyền)
-> allow a holder to acquire share of stock at a certain price and within a stated time duration
If non-detachable, not separately recorded on the books
If detachable, recorded on the books through additional paid in capital account
Common stock
Par value stock
- record in preferred or common stock account
- amount paid in excess of par credited to additional paid in capital (PIC)
Stock rights
-> give current stockholders the right to purchase newly issued share in proportion to those currently held