Assignment 3:

1. Corporation:
A corporation is an organization, usually a group of people or a company, authorized
to act as a single entity and recognized as such in law. Early incorporated entities
were established by charter. Most jurisdictions now allow the creation of new
corporations through registration.
2. Rights of stockholders:
 The most important rights that all common shareholders possess include
the right to share in the company's profitability, income and assets,
 a degree of control and influence over company management selection, pre-
emptive rights to newly issued shares,
 and general meeting voting rights.
3. Authorized stock:
Authorized stock is the maximum number of shares that a corporation is legally
permitted to issue, as specified in its articles of incorporation.
4. Issuing Stock:
Issued stock is the shares of a company that have been distributed to investors.
These are all of the shares representing the total ownership interest in a business. ...
This includes shares held both by corporate outsiders and insiders. The amount of
issued stock may be reported in a company's financial statements.
5. Par value of stock:
Par value for a share refers to the stock value stated in the corporate
charter. Shares usually have no par value or very low par value, such as one cent per
share. In the case of equity, par value has very little relation to the shares' market
price. Par value is also known as nominal value or face value.
6. No par value of stock:
No-par stock is stock issued with no par or face value. In modern practice, par value
is an antiquated concept and no-par stock is increasingly common.
7. Stated value of stock:
A stated value is an amount assigned to a corporation's stock for internal accounting
purposes when the stock has no par value.
8. Issuing stock at par, below par & above par:
At Par Value= Equilibrium
Below par value= Discount
Above par value= Premium
9. Dividends:
A dividend is a payment made by a corporation to its shareholders, usually as a
distribution of profits. When a corporation earns a profit or surplus, the corporation
is able to re-invest the profit in the business (called retained earnings) and pay a
proportion of the profit as a dividend to shareholders.
10.Cash dividends:
A cash dividend is a payment made by a company out of its earnings to investors in
the form of cash (check or electronic transfer).
11.Stock dividends:
A stock dividend is a dividend payment made in the form of additional shares rather
than a cash pay-out.
12.Common stock Vs Preferred stock:
 A common stock dividend is the dividend paid to common stock owners from
the profits of the company. Like other dividends, the pay-out is in the form of
either cash or stock.
 Preferred stock is a form of stock which may have any combination of
features not possessed by common stock including properties of both an
equity and a debt instrument, and is generally considered a hybrid
instrument.
13.Issuance of preferred stock:
For example, if a corporation issues 9% preferred stock with a par value of $100,
the preferred stockholder will receive a dividend of $9 (9% times $100) per share per
year. If the corporation issues 10% preferred stock having a par value of $25, the
stock will pay a dividend of $2.50 (10% times $25) per year.
14.Convertible preferred stock:
Convertible preferred stocks are preferred shares that include an option for the
holder to convert the shares into a fixed number of common shares after a
predetermined date. ... The value of a convertible preferred stock is ultimately based
on the performance of the common stock.
15.Callable preferred stock:
A callable preferred stock is a type of preferred stock in which the issuer has the
right to call in or redeem the stock at a present price after a defined date. ... As with
regular preferred shares, dividends on callable preferred shares must be paid by the
issuer ahead of any dividends on its common shares.
16.Treasury stock:
Treasury stock is stock repurchased by the issuer and intended for retirement or
resale to the public. It represents the difference between the number of
shares issued and the number of shares outstanding.
17.Purchase of treasury stock:
18.Reissuing treasury stock:
First, the amount in the company's treasury stock account will decline by an amount
equal to the number of shares reissued multiplied by the price the company paid
when it originally obtained the treasury stock. Second, the cash account will rise by
the cash proceeds from the sale of treasury stock.
19.Statement of retained earnings:
Retained earnings represent the amount of net income or profit left in the company
after dividends are paid out to stockholders.
20.Earnings per share:

21.Dividend yield:

Anuual dividen d
Dividend Yield= Current Stock Price