Letting Owners Know Where They Stand: The Equity Section
In This Chapter
Walking through how corporations raise capital
Gaining a view of the incorporation process
Thinking about the different parts of paid-in capital
Understanding how corporations pay their investors
Calculating earnings per share (EPS)
Discussing convertible stock and warrants
Part IV of this book is all about debt and equity, which are two ways a company can raise funds for business. Read Chapter 14 for a discussion on current debt, such as accounts payable, and Chapter 15 for the scoop on two types of long-term liabilities: notes and bonds. This chapter talks about equity.
Here we cover the nitty-gritty of how stockholders’ interest in a corporation shows up on the balance sheet. This interest reflects in the equity section and in a few different types of accounts. These include additional paid-in capital, ...