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Issued Shares
Authorized Shares = Issued Shares (sold to investors) + Unissued Shares
Issued Shares = Outstanding Stock (held by investors) + Treasury Stock (stock bought back by company)
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Are dividends paid on treasury stock?
cash dividends are not paid on treasury stock, but what about stock dividends? I would think stock dividends would apply to treasury shares, but would like to know for sure. Also, I assume stock splits apply to treasury shares and would like this verified.
Define treasury stock and explain why a corporation would purchase its own stock?
Treasury StockCommon stock that has been repurchased by the company and held in the company's treasury. These shares don't pay dividends, have no voting rights, and are not part of the total number of shares outstanding, although they are still counted as part of shares issued.See also "Stock Repurchase".Outstanding stock, purchased by the corporation, is known as treasury stock.The reasons as to why corporations buy back their outstanding stock include:☺to increase earnings per share and return on equity☺to provide tax efficient distributions of excess cash to shareholders☺to provide stock for employee stock compensation contracts☺to thwart takeover attempts☺to create or improve the market for the stock^_^
Would you trade shares bonds or annuities on a stock exchange?
shares
How does a stock buy back work?
The board of directors for a company will announce that they have decided to buy back their own shares from the current outstanding shares and then retiring those shares. A Company may do this for several reasons but the main reason is to increase the value of the stock price for the share holders. If a company has 10 million outstanding shares and a current stock price of $5/share (keep in mind the market cap would be $50 million). The company announces that the board has authorized the repurchase of 5 million shares. Then the company will typically buy those shares back throughout the year(or whatever time frame) reducing the outstanding shares to 5 million from the initial 10 million. Let's say that miraculously the company was able to purchase all 5 million shares at $5/share. So they spend $50 million buying back the stock. If I was wealthy shareholder and own 1 million shares of the company then before the buyback I owned 10%(my shares / total outstanding shares....1 milliion/10million) of the company. After the buyback there are now 5 million shares so I own 20% (1 million / 5 million) of the company. If the stock remains at $10/share after the buyback then the the market cap is now 25 million, but if shareholders thought the value of company was worth 50 million before the only thing that has changed after the buyback is the number of outstanding shares. So that means the price should increase to make the market cap go back up. So the idea is when a company buys back stock they increase the value of each share to the shareholder by increasing their ownership in the company. In our case the price of the stock should now be $10/share making the market cap 50 million again ($10/share x 5 million shares = $50 million). So buybacks are an alternative to dividends as a method for a company to return value to the shareholders.
What does a two-for-one stock split mean to shareholders?
A two for one stock split means to shareholders that the shares they hold are actually worth two shares. For example, if a person had 100 shares before the split, they would have 200 shares after the split.
Are dividends paid on treasury stock?
cash dividends are not paid on treasury stock, but what about stock dividends? I would think stock dividends would apply to treasury shares, but would like to know for sure. Also, I assume stock splits apply to treasury shares and would like this verified.
Define treasury stock and explain why a corporation would purchase its own stock?
Treasury StockCommon stock that has been repurchased by the company and held in the company's treasury. These shares don't pay dividends, have no voting rights, and are not part of the total number of shares outstanding, although they are still counted as part of shares issued.See also "Stock Repurchase".Outstanding stock, purchased by the corporation, is known as treasury stock.The reasons as to why corporations buy back their outstanding stock include:☺to increase earnings per share and return on equity☺to provide tax efficient distributions of excess cash to shareholders☺to provide stock for employee stock compensation contracts☺to thwart takeover attempts☺to create or improve the market for the stock^_^
What would cause common stock shares issued to exceed common stock shares outstanding?
declaration of a stock dividend
At the date of the financial statements common stock shares issued would exceed common stock shares outstanding as a result of the 1declaration of a stock split 2declaration of a stock dividend?
declaration of a stock dividend
What is the total number of common stock shares of Lehman Brothers outstanding?
Hello, I would like to ask what is the total number of Lehman Brothers total shares outstanding. The reason of this question is if it is worth it to participate in the Lehman Brothers settlement when I held only 27 shares of common stock during the class action period.
When claculating eps if there are 5000 shares issued and 100 of these are preferred there was no preferred stock dividends would the earnings per share include the 100 shares of preferred stock?
No, earnings per share is calculated using only common shares outstanding.
What is the meaning of Employees stock option plan?
An Employee stock option is a call option on a company's own stock issued as a form of non-cash compensation. A stock option granted to specified employees of a company. ESOPs carry the right, but not the obligation, to buy a certain amount of shares in the company at a predetermined price. When the employees exercise their stock options, shares would be issued and thus, outstanding shares would increase.
Is Book value of common stock the same as the market value?
No. To get book value per share, you would divide book value by shares outstanding. Market value is whatever the current rate is on the stock exchange.
How do you calculate weighted average number of shares?
Weighted average shares = total number of shares remains outstanding during year divided by number of months For example: during first 6 months total outstanding shares are 100000 on 1st July company issues 100000 more share Now total shares = 200000 SO weighted average share = (100000 * 12 + 100000 * 6)/12 weighted average shares = 1800000/12 = 150000 OR weighted average shares = (200000 + 100000) /2 = 150000
Would you trade shares bonds or annuities on a stock exchange?
shares
Can a subsidiary own shares in its holding company?
If a subsidiary own shares in holding company that would be considered as treasury.
You own 8 percent of common stock which sold for 98 dollars before a two for one split before tha split there are 30 thousand shares outstanding so what will your position be after the stock split?
With 30,000 shares outstanding before the split, there will be 60,000 shares outstanding after the split. With 8%, one would start with 2,400 shares and receive another 2,400 shares leaving them with 4,800 shares after the split. Your position as a % after the split will be unchanged because everyone with a share was issued an additional share. The total value of your shares, $235,200, will also not change since the equity value of the company has not changed - they just have more shares for the same value. The price; however, has changed. Right after the split, each share went from $98.00 per share to $49.00 per share. As an aside, historically, shares that split do outperform the market on average. However, there is bias in the results because only the best companies are able to effectively split their stock and, since they did not change operations, would have outperformed anyway.
