Tag: Shares

Shares of stock in a business are often issued with a par or nominal face value such as 0.001 per share. In certain jurisdictions no par stock can also be issued in which case proceeds received from the issue are credited to the capital stock account.

What is preferred stock ? Preferred stock is a type of equity which gives stockholders additional benefits (preferences). The main benefit is that the preference stockholders are entitled to dividends and repayment of their investment on liquidation before any payments are made to common stockholders.

A stock split is used to reduce the market price of the capital stock of a business in order to make it more attractive to investors, and increase demand.

For a business which is operated through a company or corporation, the equity is referred to as shareholders’ equity and the capital introduced is referred to as capital stock or share capital, and represents ownership in the company or corporation. This ownership also gives the stockholder a right to a share in the retained earnings of the business.