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/biz/ - Business & Finance


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13481391 No.13481391 [Reply] [Original]

Even my Accounting book from 2012 knows what you're up to /biz/, you'll never get my bags.

>> No.13481403
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13481403

>15 years old white teenagers are better at pump n dumping than fully grown pajeets

>> No.13481491
File: 869 KB, 1270x361, issuance of common stock.png [View same] [iqdb] [saucenao] [google]
13481491

>>13481391
Does this imply that they sold 37,624 units of common stock for $231?

Also, why is Retained Earnings being reduced, when they issue common stock?

>> No.13481505

>>13481491
Oh wait, that would $231 million, still don't understand why Retain Earnings were reduced though

>> No.13481518

Looks like the BAT logo

>> No.13482408

>>13481491
>>13481505
Don't understand this thing.

I think they must've issued Stock Compensation to employees, or something, which is why the amount of Common Stock units increased, but the Common Stock Dollar Amount decreased (because ownership in the Company will be diluted by the extra shares, decreasing the value of stockholders' holdings). Retained Earnings decreased because maybe Apple issued stocks they had previously bought, as compensation for their employees, which would basically be a Loss.

>> No.13482550

>>13482408
https://www.wallstreetprep.com/knowledge/guide-balance-sheet-projections/
>Stock-based compensation
Companies issue stock-based compensation to incentivize employees with stock in addition to cash salary. Companies primarily issue stock options and restricted stock to employees.

>This has the effect of debiting retained earnings (since stock-based compensation expense is accounted for as an operating expense)

>> No.13483013

>>13482408
>(because ownership in the Company will be diluted by the extra shares, decreasing the value of stockholders' holdings)

This thinking here seems to be wrong.

Apparently you have to get into things like the Valuation of Stock Options, but I think Apple maybe issued stock compensation to someone that ended being undervalued (as I understand it).

Or they received an amount below the Fair Value, when they issued some Stocks/Stock compensation.

This resulted decreased Capital, but increased amounts of stocks issued.

>> No.13483033

>>13483013
https://www.wallstreetprep.com/knowledge/stock-based-compensation-accounting-journal-entries/

>> No.13483346

>>13483013
>Or they received an amount below the Fair Value, when they issued some Stocks/Stock compensation.

To clarify, they may have issued Stocks below Par value (which is technically different from Fair Value). I had just used Fair Value, in its general meaning.