What is the difference between new common stock and internal common equity? - common - heattorrent
It seems that the common shares to retained earnings (internal common stock) and new common shares (common stock was split) to the outside. See how others are into it than me and is an external, no difference between them?
Tuesday, December 8, 2009
Common - Heattorrent What Is The Difference Between New Common Stock And Internal Common Equity?
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1 comments:
Adam did a great job, or should say. I will be one more thing, the transfer of net income for common stock as a dividend share (capital) to add that does not dilute the holdings of existing shareholders. "The ownership percentage of each holding exactly the same. A new issue of shares, but to bring new players and new money in the game.
Sometimes, the decision to raise new capital, is economically poor. ie, if the earnings per share decreased further to the detriment of the original owners. Therefore CFO hesitation.
New capital is the source of the less favorable financing a company can be considered. Conventional wisdom indicates that the retained earnings first to be followed by debt.
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