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why is share of OGDC common stock an asset for its owner and a liability for OGDC?

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Q: Why is a share of OGDC common stock an asset for its owner and a liability for OGDC?
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Why is a share of Oil and Gas Development Corporation 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?


Is share asset or liability?

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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.


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Is share is a asset or liability?

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.


Why is a share of Microsoft common stock an asset for its owner and a liability for Microsoft?

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.


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Is retained earnings asset equity liability income or expense?

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