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Sales Returns
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∙ 11y ago
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What is the strategy for a business take over?
Some business takeovers are done when a company or individual buys fifty one percent or more stock in a particular company. Since they own the majority share, they get to make the policies.
Who are the shareholders of a corporation?
The people who buy stock and own the company.
Who are the shareholders of the corporation?
the people who buy stock and own the company
What is the stock split?
When a stock splits, one stock becomes two. People that own the stock can see the value of their stock for the company double.
Do stock owners own the company?
Yes. They own a portion of the company. If a company has 1000 shares totally and you have bought 100 of them, then you are a 10% owner of the company
What does a person who buys a stock own?
They own a share of a company.
What is it called when a company buys back its own stock?
It is called a stock repurchase and is posted to an account called Treasury Stock, a contra-account in the Equity section.
Does the acquisition of treasury stock increase cash?
Treasury stock is stock that the issuing company buys back from the shareholders. Since the company is buying back its own shares, it decreases cash and stockholder equity, but increases a new balance called "Treasury Stock".
What is retained earnings a asset?
When a company purchases stocks, it is shown as an investment on the Asset side of the Balance Sheet. However, if a company buys back its own stock, it is shown in the Retained Earnings section of the Balance Sheet as Treasury Stock.
What is a shareholder?
A person who buys stocks in a company to own part of
When an owner buys stock what is the journal entry?
debit own stock / treasury stockcredit cash / bank
What happens to price of stocks when a corporation reduces authorized amount of stocks?
I believe what you are referring to is when a corporation buys back it's own stock resulting in less authorized shares in the marketplace. This doesn't have a direct effect on a stocks price but can typically indirectly cause a stocks price to increase. The reason that it is not direct is that the company must spend it's own money to buy back the stock. This results in less shares and each shareholder now holds a larger stake in the company but the resulting company now either has less cash in it's reserves or has issued debt to pay for the stock. Indirectly this can help the price of the stock. The fact that a company is buying it's own stock back would indicate that the company feels it's own shares are a bargin at the current price. It also adds support to a stocks price in that if the price begins to fall due to market conditions the company can step in and buy shares to prevent or limit continued stock depreciation.
What is a stock in the financial world?
A stock is a unit of ownership in a company. If you own a stock of a company it basically means you own a tiny part of that company. You can buy lots of stocks for a company.
What is the strategy for a business take over?
Some business takeovers are done when a company or individual buys fifty one percent or more stock in a particular company. Since they own the majority share, they get to make the policies.
Who are the shareholders of a corporation?
The people who buy stock and own the company.
How does a drop ship company work?
They advertise products they don't own, then when a customer buys the item they put the order to through to the dropshipping company and sit back and relax and claim the profits....
Why stocks exchange increase or decrease daily?
Because when people buy stock, that means they are paying a company a sum to have the right to own a part of that company. When this happens the value of the company goes up. However if people do not like a company they will sell the stock they own and get money back for it. When this happens the company now holds less money and its stock goes down. This happens with thousands of listings everyday on the stock exchanges.
