Issuance of Stock Flashcards
Define issuance
When a corporation sells its own stock.
What must a corporation receive when it issues stock?
Under the MBCA, shares may be issued for almost any type of consideration, including any tangible or intangible property or benefit to the corporation.
What amount of consideration must be received in exchange for stock?
Par = minimum issuance price
What is watered stock?
Par value stock that is issued for less than its par value.
What is the right to maintain percentage of ownership?
A shareholder of common stock as a right to maintain her percentage of ownership in the company by buying stock whenever there is a new issuance of stock for money.
What are authorized shares?
The maximum number of shares the corporation may issue.
What are outstanding shares?
The total number of shares issued by the corporation and held by the shareholders.
What are reacquired shares?
AKA treasury shares.
These shares are considered authorized, but are not outstanding (because the corp. owns them, not the SH’s).
Cannot be voted.
