SANJAY K’s Post

International Definition A stock represents ownership in any company. A share refers to owning a part of a specific company. If you own shares in a company, you are a shareholder of that company. Description There are two main types of stocks: common and preferred. Common stockholders have the right to vote on corporate decisions. Preferred stockholders do not have voting rights, but they have the right to receive dividends before common stockholders. Another type of stock is called "convertible preferred stock." This type of preferred stock can be converted into a set number of common shares, usually after a certain date. #marketnews #inveatmant www.finaccofund.com

Question: Company A has declared a 10% stock dividend on its 40,000 outstanding shares(par value USD.1 & Issued value is 20), with the payment date being immediate. How should the company account for this stock dividend in its financial statements? Options: A. Make a cash payment to shareholders. B. Adjust retained earnings and increase common stock and additional paid-in capital (APIC). C. Record the stock dividend as an expense on the income statement.

As a dividend-earning stock investor, it's crucial to keep track of these dates: 1️⃣ Declaration date: This is when the company's board announces the dividend amount and the date of payment. 2️⃣ Ex-dividend date: Investors must own the stock by this date to be eligible for the upcoming dividend payment. If you buy the stock on or after this date, you won't receive the dividend. 3️⃣ Book closure date (Record date): This is the date when the company checks its records to determine which shareholders are eligible to receive the dividend. Investors who own the stock on the record date will receive the dividend. 4️⃣ Payment date: This is when the dividend is actually paid out to eligible shareholders. #financialliteracymonth #wealthymindwealthylife #fiscallyfit #learninvestgrow

AT&T recently declared its quarterly dividend, payable on August 1. The Board of Directors has declared a dividend of $0.2775 per share on AT&T's common shares. The board of directors also declared quarterly dividends on the company’s 5.000% Perpetual Preferred Stock, Series A, and the company’s 4.750% Perpetual Preferred Stock, Series C. The Series A dividend is $312.50 per preferred share or $0.3125 per depositary share. The Series C dividend is $296.875 per preferred share or $0.296875 per depositary share. #TEAMATT #QuarterlyDividend #ATTShareholders https://lnkd.in/epxuJmgG

AT&T recently declared its quarterly dividend, payable on August 1. The Board of Directors has declared a dividend of $0.2775 per share on AT&T's common shares. The board of directors also declared quarterly dividends on the company’s 5.000% Perpetual Preferred Stock, Series A, and the company’s 4.750% Perpetual Preferred Stock, Series C. The Series A dividend is $312.50 per preferred share or $0.3125 per depositary share. The Series C dividend is $296.875 per preferred share or $0.296875 per depositary share. #TEAMATT #QuarterlyDividend #ATTShareholders https://lnkd.in/eCMACmq4

"Common Stocks & Preferred stocks" Both (preferred stock and common stock) represent ownership in a company, but they have some key differences that affect your rights and potential returns as an investor. Here's a breakdown: 1) Dividends Priority: If BOD declared dividends, common stockholders will receive dividends "After" preferred. 2) Claims on assets in liquidation: in liquidation case (Bankruptcy), common stockholders claims were satisfied as a residual "After" satisfying all other claims. 3) Preemptive rights: Existing common stockholders have the opportunity to buy a proportionate number of new shares before they are offered to the public. this helps existing shareholders avoid dilution of their ownership stake. *But on the other hands* - common stockholders have voting rights and control but preferred stockholders haven't these rights. So, which one is better? #Financial_Management #CMA

Stock Dividends A stock dividend occurs when the company distributes a dividend in the form of additional shares. The journal entry to record the stock dividend will transfer some amount from retained earnings to the common stock and APIC accounts. The transfer from retained earnings is necessary because even though no cash is distributed to the shareholders, some of the earnings of the company are now “owed” to the shareholders in the form of shares as a result of the shares issued in the stock dividend. Also, the company now has more shares outstanding, and the increased number of shares outstanding needs to be recognized and recorded. Recognition and recording are accomplished by reducing retained earnings and increasing common stock and APIC. Because all the changes take place within the equity section of the balance sheet, the total value of the company’s equity is not changed by a stock dividend, although the amounts in the various equity accounts are redistributed. 

💡What is Stock📈: A stock represents a share in the ownership of a company. When you buy a stock, you essentially own a piece of that company and may benefit from its growth and success. Stockholders can earn money in two main ways: 👉 Dividends: Companies sometimes pay a portion of their profits back to shareholders in the form of dividends. These payments are usually made on a regular basis (like quarterly). 👉Capital Gains: If the price of a stock goes up from the time you bought it, you can sell the stock at a higher price, earning a profit. This is called a capital gain. There are two main types of stock: 👉Common Stock: Most shares of stock are common stock. These give shareholders voting rights at shareholder meetings and a share of the company’s profits (through dividends or appreciation in stock price). 👉Preferred Stock: These shares typically don’t come with voting rights but offer fixed dividends. In the event of company liquidation, preferred shareholders are paid before common shareholders. Stocks are bought and sold on stock exchanges #shareholder #stockmarket #finace #trading

What is a preference share? Preference shares are those which give higher claims to dividends and assets of the company. Dividend are paid before common equity shareholders. Pre- defined rate of dividend. If company is bankruptcy , preferred stockholders are entitled to be paid from the company's assets before common stockholders. But, in case of debenture and preference shares, debenture is usually secured onthe assets. Risk- averse Investors. Issuer can redeem at any time. Preference shares are released to raise capital for the company, which is known as preference share capital. Types of preference shares- 1.CONVERTIBLE Preference share 2.Non- CONVERTIBLE Preference share 3.Redeemable Preference share 4.Non- Redeemable Preference share 5.PARTICIPATING Preference share 6.Non - Participating Preference share 7.Cumulative Preference share 8.Non- cumulative Preference share 9.Adjustable Preference share

Word of the day Dividend Yield Dividend yield shows the annual dividend income earned by an investor as a percentage of the current market price of a stock. It is calculated by dividing the annual dividend per share by the current market price per share and then multiplying the result by 100. A higher dividend yield number shows that the company is paying a high amount of dividend compared to its stock price.