Treasury Stock

Treasury Stock

The shares of treasury stock are held by the issuing corporation which cannot exercise any of the rights of ownership apart from the right to sell them. With the exception of the possible impact on the amount of legal capital, these shares are in substance the same as unissued shares and should generally be accounted …

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Warrants

What is Warrants? Corporations occasionally issue a special kind of equity security known as warrants. The holder of a warrant has the right to purchase a specified number of shares of stock at a stated price before an expiration date. Warrants, which are also known as stock rights and stock options, are often marketable and …

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Equity compensation

As a method of obtaining agreement between the personal goals of employees and the goals of the stockholders, many corporations provide their key employees with part of their compensation either in the form of equity securities or based upon the value of the firm’s stock. Compensation can be provided through shares of stock, warrants, and …

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Quasi-reorganization

The overall objective of accounting is to provide information to investors and creditors to help them assess the likelihood, amounts, and timing of cash flows to be received from the firm. Accountants maintain that this objective is most likely to be met if the financial statements are presented in accordance with GAAP. However, if it …

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