Accounting › Section M · Corporation accounting › Topic M.1
Raising equity by issuing stock
Selling shares lets a corporation raise large sums without promising fixed repayments, but it shares ownership and profits with every new investor. Knowing how corporations are formed, how stock classes differ and how shares are counted is the base for every equity entry that follows.
In this topic
- The corporation and how it is formed
- Advantages of the corporate form
- Disadvantages of the corporate form
- Debt or equity?
- Worked example: a covenant decides the choice
- Public and private corporations
- Common stock and its rights
- Preferred stock
- Counting shares, and what par means
- Worked example: shares and the preemptive right
- Common mistakes to avoid
- Key takeaways
This topic is part of Wuanberri Pro. Checking your access…