why is share of OGDC common stock an asset for its owner and a liability for OGDC?
Why is a share of OGDC is an asset for its owner and a liability for OGDC?
Dividend payable is the amount which is payable by the company to share holders so it is a liability of company and not an asset.
On a balance sheet there are three things: Assets, Liabilities, Shareholders Equity. A share of stock is Equity, namely a portion of the company and its earnings not owned by the company, traded for something (most often cash). It is a liability because represents a demand on the company assets. Specifically a share of stock is a demand on the companies assets after all other demands are discharged. total assets - total liabilities = shareholders equity A share of stock repersents a demand for one slice of the equity.
Share premium is a liability to the company. It is used to write off preliminary expenses and is used to issue bonus shares etc.
Retained earnings is that part of profit which is not distributed to the share holders so it is the liability of the business towards its owners and that's why like all liabilities it is also the liability of business and shown in balance sheet.
Why is a share of OGDC is an asset for its owner and a liability for OGDC?
Share is treated as liability. It is not treated as asset. shares is called as share capital. capital is entered in the liabilities side of the balance sheet.
Share a game so not confidence.
A single share is a part of capital of the company so if anybody purchase the share of company that person is investing in the share capital of company and providing the company necessary money to operate that's why it is the investment of the owner of share which is called then the shareholder of company and that shares becomes the asset of the shareholders and while company is acquiring capital in the shape of shares that's why it is the liability of the corporation to pay back that amount of money back to the shareholders at certain time or at liquidation as written in the agreement to raise the capital through share issue.
Yes, Asset side, I am contributing my share to GDP Liability side, Social security systems.
Dividend payable is the amount which is payable by the company to share holders so it is a liability of company and not an asset.
Share is a liability for business because due to issuance of shares company acquire more cash to run it's business and that amount is refundable by business to it's owners.
On a balance sheet there are three things: Assets, Liabilities, Shareholders Equity. A share of stock is Equity, namely a portion of the company and its earnings not owned by the company, traded for something (most often cash). It is a liability because represents a demand on the company assets. Specifically a share of stock is a demand on the companies assets after all other demands are discharged. total assets - total liabilities = shareholders equity A share of stock repersents a demand for one slice of the equity.
Share premium is a liability to the company. It is used to write off preliminary expenses and is used to issue bonus shares etc.
A share discount is not a type of fixed asset, it is a type of net asset.
You sue them and, if they don't have the funds, you would likely start with getting their share of the asset owned.
Retained earnings is that part of profit which is not distributed to the share holders so it is the liability of the business towards its owners and that's why like all liabilities it is also the liability of business and shown in balance sheet.