会计学清华大学已有投资学生大软件站.ppt

Corporations Why Businesses Incorporate Publicly Owned Corporations face Different Rules Disclose financial information. Financial statements prepared in accordance with GAAP. CPAs must audit the financial statements. Must comply with federal securities laws. Must submit financial information for SEC review. Rights of Stockholders Rights of Stockholders Rights of Stockholders Rights of Stockholders Rights of Stockholders Functions of the Board of Directors Functions of the Corporate Officers Authorization and Issuance of Capital Stock Authorization and Issuance of Capital Stock Authorization and Issuance of Capital Stock Paid-In Capital of a Corporation Stockholders?Equity Stockholders?Equity Issuance of Par Value Stock Issuance of Par Value Stock Issuance of Par Value Stock Stockholders?Equity Preferred Stock A separate class of stock, typically having priority over common shares in . . . Dividend distributions. Distribution of assets in case of liquidation. Cumulative Preferred Stock Stock Preferred as to Dividends Stock Preferred as to Dividends Convertible Preferred Stock Preferred Stock Stock Issued for Assets Other Than Cash Market Value Market Price of Preferred Stock Factors affecting market price of preferred stock: Dividend rate Risk Level of interest rates Market Price of Common Stock Stock Splits Companies use stock splits to reduce market price. Outstanding shares increase, but par value is decreased proportionately. Stock SplitsExample Stock SplitsExample Treasury Stock Treasury Stock Treasury StockExample Treasury StockExample Treasury StockExample Treasury StockExample Stockholders?Equity Presentation End of Chapter 11 Factors affecting market price of common stock: Investors?expectations of future profitability. Risk that this level of profitability will not be achieved. Changes in market value have no impact on the books of the issuer. Ice Cream Parlor Banana Splits On Sale Now Assume that a corporation had 5,000 shares of $1 par valu