Equity Financing Module 4

Flashcards covering key concepts and terminology related to equity financing and treasury stock from the lecture notes.

Equity Financing

The process of raising capital through the sale of shares.

Treasury Stock

Shares of a company's own stock that have been issued but later re-acquired by the company.

Re-issue Price

The price at which treasury stock is re-issued to the market.

Re-acquisition Cost

The price at which the treasury stock was originally repurchased by the company.

Paid-in Capital – Treasury

An equity account representing the excess of the re-issue price over the re-acquisition cost when treasury stock is re-issued.

Retained Earnings

The portion of net income that is retained in the company rather than distributed to shareholders.

Deficit in Paid-in Capital

When the re-issue price is less than the re-acquisition cost, resulting in a negative balance in the paid-in capital account after debiting.

Total Stockholders' Equity

The total value of a company's assets minus its liabilities, representing the owners' claim on the business.

Contributed Capital

The total value of contributions made by shareholders to a company.

Outstanding Shares

Shares that are currently held by investors, including both institutional and individual investors.