1. Dividend Policy
1.1. Major Reasons Why Few Companies Pay Dividends Equal to Their Retained Earnings
1.1.1. Maintain Agreements With Creditors
1.1.2. Meet State Incorporation Requirements
1.1.3. To Finance Growth or Expansion
1.1.4. To Smooth Out Dividend Payments
1.1.5. To Build Up a Cushion Against Possible Losses
1.2. Financial Conidition and Dividend Distributions
1.3. Types of Dividends
1.3.1. Cash
1.3.1.1. Date of Declaration
1.3.1.2. Date of Record
1.3.1.3. Date of Payment
1.3.2. Property
1.3.2.1. Restate Property Which Will be Destribute at Fair Value
1.3.3. Liquidating
1.3.4. Shares
1.3.4.1. Distributes No Assets as Dividends
1.3.4.2. Record at Par Value of the Shares Issued
1.4. Shares Dividends and Share Splits
1.4.1. Share Dividens
1.4.1.1. Distributes No Assets as Dividends
1.4.1.2. Record at Par Value of the Shares Issued
1.4.2. Share Splits
1.4.2.1. To Reduce the Market Value of Shares
1.4.2.2. No Entry Recorded
1.4.2.3. Decrease Par Value
1.4.2.4. Increase Number of Shares
2. Presentation and Analysis
2.1. Presentation of Equity
2.1.1. Statement of Financial Position
2.1.2. Disclosure of Restrictions on Retained Earnings
2.1.3. Presentation of Statement of Changes in Equity
2.2. Analysis of Equity
2.2.1. Return on Ordinary Share Equity (ROE)
2.2.2. Payout Ratio
2.2.3. Book Value per Share
3. Corporate Capital
3.1. Corporate Form
3.1.1. Primary Forms of Business Organization
3.1.1.1. Propietorship
3.1.1.2. Partnership
3.1.1.3. Corporation
3.1.2. Special Characteristics
3.1.2.1. Influence of Corporate Law
3.1.2.2. Use of the Share System
3.1.2.2.1. Carry Proportionately in Profits and Losses
3.1.2.2.2. Carry Proportionately in Management (The Right to Vote for Directors)
3.1.2.2.3. Carry Proportionately in Assets Upon Liquidation
3.1.2.2.4. Carry Proportionately in Preemptive Right
3.1.2.3. Development of a Variety of Ownership Interests
3.1.2.3.1. Ordinary Shares
3.1.2.3.2. Preferences Shares
3.2. Components of equity
3.2.1. Share Capital
3.2.2. Share Premium
3.2.3. Retained Earnings
3.2.4. Accumulated Other Comprehensive Income
3.2.5. Treasury Shares
3.2.6. Non-controlling Interest (Minority Interest)
3.3. Issuance of Shares
3.3.1. Par Value Shares
3.3.1.1. Preference Shares
3.3.1.2. Ordinary Shares
3.3.1.3. Share Premium
3.3.2. No-par Shares (Stated Value)
3.3.2.1. Avoids Contingent Liability
3.3.2.2. Avoids Confusion Over Recording Par Value vs Fair Market Value
3.3.3. Shares Issued in Combination with Other Securities
3.3.3.1. Proportional Method
3.3.3.2. Incremental Method
3.3.4. Shares Issued in Non-cash Transactions
3.3.4.1. Watered Shares
3.3.4.2. Secret Reserves
3.3.5. Costs of Issuing Shares
3.3.5.1. Underwriting Costs
3.3.5.2. Accounting and Legal Fees
3.3.5.3. Printing Costs
3.3.5.4. Taxes
3.4. Preference Shares
3.4.1. Features Most Often Associated
3.4.1.1. Preference as to Dividends
3.4.1.2. Preference as to Assets in the Event of Liquidation
3.4.1.3. Convertible Into Ordinary Shares
3.4.1.4. Callable at the Option of the Corporation
3.4.1.5. Non-voting
3.4.2. Features of Preference Shares
3.4.2.1. Cumulative Preference Shares
3.4.2.2. Participating Preference Shares
3.4.2.3. Convertible Preference Shares
3.4.2.4. Callable Preference Shares
3.4.2.5. Reedemable Preference Shares
3.4.3. Accounting for and Reporting of Preference Shares
4. Reacquisition of Shares
4.1. Companies' Reasons of Reaquisition
4.1.1. To Provide Tax-efficient Distributions of Excess Cash to Shareholders
4.1.2. To Increase EPS and ROE
4.1.3. To Provide Shares for Employee Compensation Contracts or to Meet Potential Merger Needs
4.1.4. To Thwart Takeover Attempts or to Reduce the Number of Shareholders
4.1.5. To Make a Market in the Shares
4.2. Other Characteristics
4.2.1. Not an Assets
4.2.2. Essentially Same as Unissued Ordinary Shares
4.3. Purchase of Treasury Shares
4.3.1. Cost Method
4.3.2. Par (Stated) Value Method
4.4. Sale of Treasury Shares
4.4.1. Above Cost
4.4.2. Below Cost