Chapter 13: Corporations: Organization, Stock Transactions, and Dividends

Initial Post

Part 1 (Use your company's annual report)

Please take a look at the Statement of Stockholders' Equity. Tell us about the common stock that the company has issued including its outstanding shares. Also, take a look at a website, such as Yahoo Finance and find information about the corporation's price per share and whether or not it issues a dividend. Please indicate what the balance is in the corporation's retained earnings account.

Part 2

A stockbroker advises a client to "buy preferred stock...with that type of stock, you will never have to worry about losing dividends." Is the stockbroker correct? Please include information about cumulative preferred stock and dividends in arrears when developing your post.

Responses to Instructor

Please check your thread for questions or comments from me and be sure to provide a comprehensive response, as requested.

Responses to Classmates

Please explain the difference between a cash dividend and a stock dividend when responding to classmates this week.