Tag: Common Stock

  • Stock – Fundamentals of Ownership and Control

    Stock – Fundamentals of Ownership and Control

    The basic principle of stock is an ownership right of a company based on the percentage of outstanding shares in possession. It is essentially a mutual understanding between shareholders that each investor’s percentage of ownership is similar in rights based on that percentage of ownership.

  • Retained Earnings – How it Works

    Retained Earnings – How it Works

    In the equity section of the balance sheet there is an account that tallies the lifetime earnings net of dividends for the company. This account is referred to as the Retained Earnings of the business.

  • Stock

    Stock

    The one single term mostly equated to capitalism is ‘Stock’. When a business is incorporated, stock is the core medium of exchange for the investment. The company issues a certificate referred to as stock in exchange for the investment – most often cash. This is the one true form of pure risk. Most other forms of investments generally have…

  • What is an S-Corporation?

    What is an S-Corporation?

    Within the family of corporations, the Internal Revenue Service (IRS) grants tax free status to S-Corporations. It is strictly an IRS term.  In the IRS code, there are several subchapters pertaining to corporations; Subchapter S identifies and regulates S-Corporations. In essence, S-Corporations are a pass through entity meaning that all income, losses, credits and special deductions are…