SlideShare a Scribd company logo
Identify the two primary sources of stockholders equity, and which source would be considered
to be internally generated?
Solution
Stockholders equity is built on two parts
Paid Up capital: When initially shares are issued in an IPO to the public the stockholder's
equity has two parts i.e. face value of shares and the additional paid up capital i.e. price at which
share was sold in the IPO less the face value.
Retained Earnings: Retained earnings form the second component of the Stockholder's equity.
Each year a part of Net Income might be paid off by the company as dividend to preferred and
common share holders. The amount left after paying dividends is called retained earning and is
added to stock holder's equity.
Retianed earnings are the internally generated source of stockholder's equity becasue it comes
from the earnings of the organization which are generated by selling products and not by
accessing capital markets.

More Related Content

Similar to Identify the two primary sources of stockholders equity- and which sou.docx

Vincy varghese fm
Vincy varghese fmVincy varghese fm
Vincy varghese fm
Vincy Varghese
 
Dividend Decisions.pdf
Dividend Decisions.pdfDividend Decisions.pdf
Dividend Decisions.pdf
NeyazAhmad69
 
The reporting entity concept applies to sole proprietorships only- par.docx
The reporting entity concept applies to sole proprietorships only- par.docxThe reporting entity concept applies to sole proprietorships only- par.docx
The reporting entity concept applies to sole proprietorships only- par.docx
clarkjanyce
 
Snp afaaa
Snp afaaaSnp afaaa
Snp afaaa
Syed Niyamath
 
Share capital 111.pptx
Share capital 111.pptxShare capital 111.pptx
Share capital 111.pptx
Deepali Hongekar
 
ISSUE OF SHARES
ISSUE OF SHARESISSUE OF SHARES
ISSUE OF SHARES
andigopi
 
Capital market
Capital market Capital market
Capital market
Rahul Jain
 
Types and forms of dividend
Types and forms  of dividendTypes and forms  of dividend
Types and forms of dividend
Hářşhîťh Harsha
 
FINANCIAL MANAGEMENT PPT BY FINMANDividend policy joseph agayatin&jezza deauna
FINANCIAL MANAGEMENT PPT BY FINMANDividend policy joseph agayatin&jezza deaunaFINANCIAL MANAGEMENT PPT BY FINMANDividend policy joseph agayatin&jezza deauna
FINANCIAL MANAGEMENT PPT BY FINMANDividend policy joseph agayatin&jezza deaunaMary Rose Habagat
 
Issue of shares
Issue of sharesIssue of shares
Issue of shares
KoolCaptain
 
Sources of business finance
Sources of business finance Sources of business finance
Sources of business finance
Atul Agalawe
 
Equity- Basics of Equity and Capital structure
Equity- Basics of Equity and Capital structure Equity- Basics of Equity and Capital structure
Equity- Basics of Equity and Capital structure
Naveen Kanth CFPCM
 
Equity - Introduction to Equity
Equity - Introduction to Equity Equity - Introduction to Equity
Equity - Introduction to Equity
BFSI academy
 
Avinash company law
Avinash company lawAvinash company law
Avinash company law
Avinash Rai
 
ch12 CORPORATIONS ORGANIZATION, STOCK TRANSACTIONS, DIVIDENDS, AND RETAINED E...
ch12 CORPORATIONS ORGANIZATION, STOCK TRANSACTIONS, DIVIDENDS, AND RETAINED E...ch12 CORPORATIONS ORGANIZATION, STOCK TRANSACTIONS, DIVIDENDS, AND RETAINED E...
ch12 CORPORATIONS ORGANIZATION, STOCK TRANSACTIONS, DIVIDENDS, AND RETAINED E...
JemalSeid25
 
Dividend decision
Dividend decisionDividend decision
Dividend decision
RADHIKA GUPTA
 
ACCOUNTING FOR SHAREHOLDERS EQUITY ..ppt
ACCOUNTING FOR SHAREHOLDERS EQUITY ..pptACCOUNTING FOR SHAREHOLDERS EQUITY ..ppt
ACCOUNTING FOR SHAREHOLDERS EQUITY ..ppt
BernardOmboi1
 
Define the terms paid-in-capital and retained earningsDefine.pdf
Define the terms paid-in-capital and retained earningsDefine.pdfDefine the terms paid-in-capital and retained earningsDefine.pdf
Define the terms paid-in-capital and retained earningsDefine.pdf
alshaikhkhanzariarts
 
Financial Assistance - Copy.pptx
Financial Assistance - Copy.pptxFinancial Assistance - Copy.pptx
Financial Assistance - Copy.pptx
RikrajPramanik
 
UNIT - III CL.pptx
UNIT - III CL.pptxUNIT - III CL.pptx
UNIT - III CL.pptx
MONIKARPSGRKCW
 

Similar to Identify the two primary sources of stockholders equity- and which sou.docx (20)

Vincy varghese fm
Vincy varghese fmVincy varghese fm
Vincy varghese fm
 
Dividend Decisions.pdf
Dividend Decisions.pdfDividend Decisions.pdf
Dividend Decisions.pdf
 
The reporting entity concept applies to sole proprietorships only- par.docx
The reporting entity concept applies to sole proprietorships only- par.docxThe reporting entity concept applies to sole proprietorships only- par.docx
The reporting entity concept applies to sole proprietorships only- par.docx
 
Snp afaaa
Snp afaaaSnp afaaa
Snp afaaa
 
Share capital 111.pptx
Share capital 111.pptxShare capital 111.pptx
Share capital 111.pptx
 
ISSUE OF SHARES
ISSUE OF SHARESISSUE OF SHARES
ISSUE OF SHARES
 
Capital market
Capital market Capital market
Capital market
 
Types and forms of dividend
Types and forms  of dividendTypes and forms  of dividend
Types and forms of dividend
 
FINANCIAL MANAGEMENT PPT BY FINMANDividend policy joseph agayatin&jezza deauna
FINANCIAL MANAGEMENT PPT BY FINMANDividend policy joseph agayatin&jezza deaunaFINANCIAL MANAGEMENT PPT BY FINMANDividend policy joseph agayatin&jezza deauna
FINANCIAL MANAGEMENT PPT BY FINMANDividend policy joseph agayatin&jezza deauna
 
Issue of shares
Issue of sharesIssue of shares
Issue of shares
 
Sources of business finance
Sources of business finance Sources of business finance
Sources of business finance
 
Equity- Basics of Equity and Capital structure
Equity- Basics of Equity and Capital structure Equity- Basics of Equity and Capital structure
Equity- Basics of Equity and Capital structure
 
Equity - Introduction to Equity
Equity - Introduction to Equity Equity - Introduction to Equity
Equity - Introduction to Equity
 
Avinash company law
Avinash company lawAvinash company law
Avinash company law
 
ch12 CORPORATIONS ORGANIZATION, STOCK TRANSACTIONS, DIVIDENDS, AND RETAINED E...
ch12 CORPORATIONS ORGANIZATION, STOCK TRANSACTIONS, DIVIDENDS, AND RETAINED E...ch12 CORPORATIONS ORGANIZATION, STOCK TRANSACTIONS, DIVIDENDS, AND RETAINED E...
ch12 CORPORATIONS ORGANIZATION, STOCK TRANSACTIONS, DIVIDENDS, AND RETAINED E...
 
Dividend decision
Dividend decisionDividend decision
Dividend decision
 
ACCOUNTING FOR SHAREHOLDERS EQUITY ..ppt
ACCOUNTING FOR SHAREHOLDERS EQUITY ..pptACCOUNTING FOR SHAREHOLDERS EQUITY ..ppt
ACCOUNTING FOR SHAREHOLDERS EQUITY ..ppt
 
Define the terms paid-in-capital and retained earningsDefine.pdf
Define the terms paid-in-capital and retained earningsDefine.pdfDefine the terms paid-in-capital and retained earningsDefine.pdf
Define the terms paid-in-capital and retained earningsDefine.pdf
 
Financial Assistance - Copy.pptx
Financial Assistance - Copy.pptxFinancial Assistance - Copy.pptx
Financial Assistance - Copy.pptx
 
UNIT - III CL.pptx
UNIT - III CL.pptxUNIT - III CL.pptx
UNIT - III CL.pptx
 

More from edwardk6

Identify which of the following is NOT a TCP-IP Attack- Question 5 opt.docx
Identify which of the following is NOT a TCP-IP Attack- Question 5 opt.docxIdentify which of the following is NOT a TCP-IP Attack- Question 5 opt.docx
Identify which of the following is NOT a TCP-IP Attack- Question 5 opt.docx
edwardk6
 
Identifying Matter- Physical Properties (Section 1-4 15- The elements.docx
Identifying Matter- Physical Properties (Section 1-4 15- The elements.docxIdentifying Matter- Physical Properties (Section 1-4 15- The elements.docx
Identifying Matter- Physical Properties (Section 1-4 15- The elements.docx
edwardk6
 
Identifying aclds and bases by their reaction with water Kri Some chem.docx
Identifying aclds and bases by their reaction with water Kri Some chem.docxIdentifying aclds and bases by their reaction with water Kri Some chem.docx
Identifying aclds and bases by their reaction with water Kri Some chem.docx
edwardk6
 
If you had a system- that had large amounts of daily data inflows- tha.docx
If you had a system- that had large amounts of daily data inflows- tha.docxIf you had a system- that had large amounts of daily data inflows- tha.docx
If you had a system- that had large amounts of daily data inflows- tha.docx
edwardk6
 
If two points are in a common reference frame- then a They are not in.docx
If two points are in a common reference frame- then a They are not in.docxIf two points are in a common reference frame- then a They are not in.docx
If two points are in a common reference frame- then a They are not in.docx
edwardk6
 
Identify at least two types of system architectures that work well in.docx
Identify at least two types of system architectures that work well in.docxIdentify at least two types of system architectures that work well in.docx
Identify at least two types of system architectures that work well in.docx
edwardk6
 
Identify and prioritize information assets- Identify and prioritize th.docx
Identify and prioritize information assets- Identify and prioritize th.docxIdentify and prioritize information assets- Identify and prioritize th.docx
Identify and prioritize information assets- Identify and prioritize th.docx
edwardk6
 
If the Android platform you are developing for does not support fragme.docx
If the Android platform you are developing for does not support fragme.docxIf the Android platform you are developing for does not support fragme.docx
If the Android platform you are developing for does not support fragme.docx
edwardk6
 
E13-7 On January 1- 2010- the stockholders-' equity section of Nunez C.docx
E13-7 On January 1- 2010- the stockholders-' equity section of Nunez C.docxE13-7 On January 1- 2010- the stockholders-' equity section of Nunez C.docx
E13-7 On January 1- 2010- the stockholders-' equity section of Nunez C.docx
edwardk6
 
E 4- Elijah Samuels and Tony Winslow agreed to form a partnership- Sam.docx
E 4- Elijah Samuels and Tony Winslow agreed to form a partnership- Sam.docxE 4- Elijah Samuels and Tony Winslow agreed to form a partnership- Sam.docx
E 4- Elijah Samuels and Tony Winslow agreed to form a partnership- Sam.docx
edwardk6
 
During October- Wichita Light Company experiences the following transa.docx
During October- Wichita Light Company experiences the following transa.docxDuring October- Wichita Light Company experiences the following transa.docx
During October- Wichita Light Company experiences the following transa.docx
edwardk6
 
During a total lunar eclipse- in which the moon passes entirely into t.docx
During a total lunar eclipse- in which the moon passes entirely into t.docxDuring a total lunar eclipse- in which the moon passes entirely into t.docx
During a total lunar eclipse- in which the moon passes entirely into t.docx
edwardk6
 
During 2011- Arthur Corportation reported a net income of $3-059-000-.docx
During 2011- Arthur Corportation reported a net income of $3-059-000-.docxDuring 2011- Arthur Corportation reported a net income of $3-059-000-.docx
During 2011- Arthur Corportation reported a net income of $3-059-000-.docx
edwardk6
 
Driving School has 4 learning centres- The network of each learning ce.docx
Driving School has 4 learning centres- The network of each learning ce.docxDriving School has 4 learning centres- The network of each learning ce.docx
Driving School has 4 learning centres- The network of each learning ce.docx
edwardk6
 
Donnie Hilfiger has two classes of stock authorized- S1 par preferred.docx
Donnie Hilfiger has two classes of stock authorized- S1 par preferred.docxDonnie Hilfiger has two classes of stock authorized- S1 par preferred.docx
Donnie Hilfiger has two classes of stock authorized- S1 par preferred.docx
edwardk6
 
Doris Washington recently assumed her new position as HR Director at t.docx
Doris Washington recently assumed her new position as HR Director at t.docxDoris Washington recently assumed her new position as HR Director at t.docx
Doris Washington recently assumed her new position as HR Director at t.docx
edwardk6
 
Doppler Effect- True or False John is listening to a horn- He knows th.docx
Doppler Effect- True or False John is listening to a horn- He knows th.docxDoppler Effect- True or False John is listening to a horn- He knows th.docx
Doppler Effect- True or False John is listening to a horn- He knows th.docx
edwardk6
 
DQ #4 Explain the US Government Thrift Savings Plans-SolutionThe US Go.docx
DQ #4 Explain the US Government Thrift Savings Plans-SolutionThe US Go.docxDQ #4 Explain the US Government Thrift Savings Plans-SolutionThe US Go.docx
DQ #4 Explain the US Government Thrift Savings Plans-SolutionThe US Go.docx
edwardk6
 

More from edwardk6 (18)

Identify which of the following is NOT a TCP-IP Attack- Question 5 opt.docx
Identify which of the following is NOT a TCP-IP Attack- Question 5 opt.docxIdentify which of the following is NOT a TCP-IP Attack- Question 5 opt.docx
Identify which of the following is NOT a TCP-IP Attack- Question 5 opt.docx
 
Identifying Matter- Physical Properties (Section 1-4 15- The elements.docx
Identifying Matter- Physical Properties (Section 1-4 15- The elements.docxIdentifying Matter- Physical Properties (Section 1-4 15- The elements.docx
Identifying Matter- Physical Properties (Section 1-4 15- The elements.docx
 
Identifying aclds and bases by their reaction with water Kri Some chem.docx
Identifying aclds and bases by their reaction with water Kri Some chem.docxIdentifying aclds and bases by their reaction with water Kri Some chem.docx
Identifying aclds and bases by their reaction with water Kri Some chem.docx
 
If you had a system- that had large amounts of daily data inflows- tha.docx
If you had a system- that had large amounts of daily data inflows- tha.docxIf you had a system- that had large amounts of daily data inflows- tha.docx
If you had a system- that had large amounts of daily data inflows- tha.docx
 
If two points are in a common reference frame- then a They are not in.docx
If two points are in a common reference frame- then a They are not in.docxIf two points are in a common reference frame- then a They are not in.docx
If two points are in a common reference frame- then a They are not in.docx
 
Identify at least two types of system architectures that work well in.docx
Identify at least two types of system architectures that work well in.docxIdentify at least two types of system architectures that work well in.docx
Identify at least two types of system architectures that work well in.docx
 
Identify and prioritize information assets- Identify and prioritize th.docx
Identify and prioritize information assets- Identify and prioritize th.docxIdentify and prioritize information assets- Identify and prioritize th.docx
Identify and prioritize information assets- Identify and prioritize th.docx
 
If the Android platform you are developing for does not support fragme.docx
If the Android platform you are developing for does not support fragme.docxIf the Android platform you are developing for does not support fragme.docx
If the Android platform you are developing for does not support fragme.docx
 
E13-7 On January 1- 2010- the stockholders-' equity section of Nunez C.docx
E13-7 On January 1- 2010- the stockholders-' equity section of Nunez C.docxE13-7 On January 1- 2010- the stockholders-' equity section of Nunez C.docx
E13-7 On January 1- 2010- the stockholders-' equity section of Nunez C.docx
 
E 4- Elijah Samuels and Tony Winslow agreed to form a partnership- Sam.docx
E 4- Elijah Samuels and Tony Winslow agreed to form a partnership- Sam.docxE 4- Elijah Samuels and Tony Winslow agreed to form a partnership- Sam.docx
E 4- Elijah Samuels and Tony Winslow agreed to form a partnership- Sam.docx
 
During October- Wichita Light Company experiences the following transa.docx
During October- Wichita Light Company experiences the following transa.docxDuring October- Wichita Light Company experiences the following transa.docx
During October- Wichita Light Company experiences the following transa.docx
 
During a total lunar eclipse- in which the moon passes entirely into t.docx
During a total lunar eclipse- in which the moon passes entirely into t.docxDuring a total lunar eclipse- in which the moon passes entirely into t.docx
During a total lunar eclipse- in which the moon passes entirely into t.docx
 
During 2011- Arthur Corportation reported a net income of $3-059-000-.docx
During 2011- Arthur Corportation reported a net income of $3-059-000-.docxDuring 2011- Arthur Corportation reported a net income of $3-059-000-.docx
During 2011- Arthur Corportation reported a net income of $3-059-000-.docx
 
Driving School has 4 learning centres- The network of each learning ce.docx
Driving School has 4 learning centres- The network of each learning ce.docxDriving School has 4 learning centres- The network of each learning ce.docx
Driving School has 4 learning centres- The network of each learning ce.docx
 
Donnie Hilfiger has two classes of stock authorized- S1 par preferred.docx
Donnie Hilfiger has two classes of stock authorized- S1 par preferred.docxDonnie Hilfiger has two classes of stock authorized- S1 par preferred.docx
Donnie Hilfiger has two classes of stock authorized- S1 par preferred.docx
 
Doris Washington recently assumed her new position as HR Director at t.docx
Doris Washington recently assumed her new position as HR Director at t.docxDoris Washington recently assumed her new position as HR Director at t.docx
Doris Washington recently assumed her new position as HR Director at t.docx
 
Doppler Effect- True or False John is listening to a horn- He knows th.docx
Doppler Effect- True or False John is listening to a horn- He knows th.docxDoppler Effect- True or False John is listening to a horn- He knows th.docx
Doppler Effect- True or False John is listening to a horn- He knows th.docx
 
DQ #4 Explain the US Government Thrift Savings Plans-SolutionThe US Go.docx
DQ #4 Explain the US Government Thrift Savings Plans-SolutionThe US Go.docxDQ #4 Explain the US Government Thrift Savings Plans-SolutionThe US Go.docx
DQ #4 Explain the US Government Thrift Savings Plans-SolutionThe US Go.docx
 

Recently uploaded

Best Digital Marketing Institute In NOIDA
Best Digital Marketing Institute In NOIDABest Digital Marketing Institute In NOIDA
Best Digital Marketing Institute In NOIDA
deeptiverma2406
 
1.4 modern child centered education - mahatma gandhi-2.pptx
1.4 modern child centered education - mahatma gandhi-2.pptx1.4 modern child centered education - mahatma gandhi-2.pptx
1.4 modern child centered education - mahatma gandhi-2.pptx
JosvitaDsouza2
 
A Strategic Approach: GenAI in Education
A Strategic Approach: GenAI in EducationA Strategic Approach: GenAI in Education
A Strategic Approach: GenAI in Education
Peter Windle
 
Biological Screening of Herbal Drugs in detailed.
Biological Screening of Herbal Drugs in detailed.Biological Screening of Herbal Drugs in detailed.
Biological Screening of Herbal Drugs in detailed.
Ashokrao Mane college of Pharmacy Peth-Vadgaon
 
How libraries can support authors with open access requirements for UKRI fund...
How libraries can support authors with open access requirements for UKRI fund...How libraries can support authors with open access requirements for UKRI fund...
How libraries can support authors with open access requirements for UKRI fund...
Jisc
 
Lapbook sobre os Regimes Totalitários.pdf
Lapbook sobre os Regimes Totalitários.pdfLapbook sobre os Regimes Totalitários.pdf
Lapbook sobre os Regimes Totalitários.pdf
Jean Carlos Nunes Paixão
 
Marketing internship report file for MBA
Marketing internship report file for MBAMarketing internship report file for MBA
Marketing internship report file for MBA
gb193092
 
Unit 8 - Information and Communication Technology (Paper I).pdf
Unit 8 - Information and Communication Technology (Paper I).pdfUnit 8 - Information and Communication Technology (Paper I).pdf
Unit 8 - Information and Communication Technology (Paper I).pdf
Thiyagu K
 
Digital Tools and AI for Teaching Learning and Research
Digital Tools and AI for Teaching Learning and ResearchDigital Tools and AI for Teaching Learning and Research
Digital Tools and AI for Teaching Learning and Research
Vikramjit Singh
 
Chapter -12, Antibiotics (One Page Notes).pdf
Chapter -12, Antibiotics (One Page Notes).pdfChapter -12, Antibiotics (One Page Notes).pdf
Chapter -12, Antibiotics (One Page Notes).pdf
Kartik Tiwari
 
Thesis Statement for students diagnonsed withADHD.ppt
Thesis Statement for students diagnonsed withADHD.pptThesis Statement for students diagnonsed withADHD.ppt
Thesis Statement for students diagnonsed withADHD.ppt
EverAndrsGuerraGuerr
 
CACJapan - GROUP Presentation 1- Wk 4.pdf
CACJapan - GROUP Presentation 1- Wk 4.pdfCACJapan - GROUP Presentation 1- Wk 4.pdf
CACJapan - GROUP Presentation 1- Wk 4.pdf
camakaiclarkmusic
 
2024.06.01 Introducing a competency framework for languag learning materials ...
2024.06.01 Introducing a competency framework for languag learning materials ...2024.06.01 Introducing a competency framework for languag learning materials ...
2024.06.01 Introducing a competency framework for languag learning materials ...
Sandy Millin
 
Guidance_and_Counselling.pdf B.Ed. 4th Semester
Guidance_and_Counselling.pdf B.Ed. 4th SemesterGuidance_and_Counselling.pdf B.Ed. 4th Semester
Guidance_and_Counselling.pdf B.Ed. 4th Semester
Atul Kumar Singh
 
Synthetic Fiber Construction in lab .pptx
Synthetic Fiber Construction in lab .pptxSynthetic Fiber Construction in lab .pptx
Synthetic Fiber Construction in lab .pptx
Pavel ( NSTU)
 
BÀI TẬP BỔ TRỢ TIẾNG ANH GLOBAL SUCCESS LỚP 3 - CẢ NĂM (CÓ FILE NGHE VÀ ĐÁP Á...
BÀI TẬP BỔ TRỢ TIẾNG ANH GLOBAL SUCCESS LỚP 3 - CẢ NĂM (CÓ FILE NGHE VÀ ĐÁP Á...BÀI TẬP BỔ TRỢ TIẾNG ANH GLOBAL SUCCESS LỚP 3 - CẢ NĂM (CÓ FILE NGHE VÀ ĐÁP Á...
BÀI TẬP BỔ TRỢ TIẾNG ANH GLOBAL SUCCESS LỚP 3 - CẢ NĂM (CÓ FILE NGHE VÀ ĐÁP Á...
Nguyen Thanh Tu Collection
 
TESDA TM1 REVIEWER FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...
TESDA TM1 REVIEWER  FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...TESDA TM1 REVIEWER  FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...
TESDA TM1 REVIEWER FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...
EugeneSaldivar
 
Multithreading_in_C++ - std::thread, race condition
Multithreading_in_C++ - std::thread, race conditionMultithreading_in_C++ - std::thread, race condition
Multithreading_in_C++ - std::thread, race condition
Mohammed Sikander
 
The French Revolution Class 9 Study Material pdf free download
The French Revolution Class 9 Study Material pdf free downloadThe French Revolution Class 9 Study Material pdf free download
The French Revolution Class 9 Study Material pdf free download
Vivekanand Anglo Vedic Academy
 
Overview on Edible Vaccine: Pros & Cons with Mechanism
Overview on Edible Vaccine: Pros & Cons with MechanismOverview on Edible Vaccine: Pros & Cons with Mechanism
Overview on Edible Vaccine: Pros & Cons with Mechanism
DeeptiGupta154
 

Recently uploaded (20)

Best Digital Marketing Institute In NOIDA
Best Digital Marketing Institute In NOIDABest Digital Marketing Institute In NOIDA
Best Digital Marketing Institute In NOIDA
 
1.4 modern child centered education - mahatma gandhi-2.pptx
1.4 modern child centered education - mahatma gandhi-2.pptx1.4 modern child centered education - mahatma gandhi-2.pptx
1.4 modern child centered education - mahatma gandhi-2.pptx
 
A Strategic Approach: GenAI in Education
A Strategic Approach: GenAI in EducationA Strategic Approach: GenAI in Education
A Strategic Approach: GenAI in Education
 
Biological Screening of Herbal Drugs in detailed.
Biological Screening of Herbal Drugs in detailed.Biological Screening of Herbal Drugs in detailed.
Biological Screening of Herbal Drugs in detailed.
 
How libraries can support authors with open access requirements for UKRI fund...
How libraries can support authors with open access requirements for UKRI fund...How libraries can support authors with open access requirements for UKRI fund...
How libraries can support authors with open access requirements for UKRI fund...
 
Lapbook sobre os Regimes Totalitários.pdf
Lapbook sobre os Regimes Totalitários.pdfLapbook sobre os Regimes Totalitários.pdf
Lapbook sobre os Regimes Totalitários.pdf
 
Marketing internship report file for MBA
Marketing internship report file for MBAMarketing internship report file for MBA
Marketing internship report file for MBA
 
Unit 8 - Information and Communication Technology (Paper I).pdf
Unit 8 - Information and Communication Technology (Paper I).pdfUnit 8 - Information and Communication Technology (Paper I).pdf
Unit 8 - Information and Communication Technology (Paper I).pdf
 
Digital Tools and AI for Teaching Learning and Research
Digital Tools and AI for Teaching Learning and ResearchDigital Tools and AI for Teaching Learning and Research
Digital Tools and AI for Teaching Learning and Research
 
Chapter -12, Antibiotics (One Page Notes).pdf
Chapter -12, Antibiotics (One Page Notes).pdfChapter -12, Antibiotics (One Page Notes).pdf
Chapter -12, Antibiotics (One Page Notes).pdf
 
Thesis Statement for students diagnonsed withADHD.ppt
Thesis Statement for students diagnonsed withADHD.pptThesis Statement for students diagnonsed withADHD.ppt
Thesis Statement for students diagnonsed withADHD.ppt
 
CACJapan - GROUP Presentation 1- Wk 4.pdf
CACJapan - GROUP Presentation 1- Wk 4.pdfCACJapan - GROUP Presentation 1- Wk 4.pdf
CACJapan - GROUP Presentation 1- Wk 4.pdf
 
2024.06.01 Introducing a competency framework for languag learning materials ...
2024.06.01 Introducing a competency framework for languag learning materials ...2024.06.01 Introducing a competency framework for languag learning materials ...
2024.06.01 Introducing a competency framework for languag learning materials ...
 
Guidance_and_Counselling.pdf B.Ed. 4th Semester
Guidance_and_Counselling.pdf B.Ed. 4th SemesterGuidance_and_Counselling.pdf B.Ed. 4th Semester
Guidance_and_Counselling.pdf B.Ed. 4th Semester
 
Synthetic Fiber Construction in lab .pptx
Synthetic Fiber Construction in lab .pptxSynthetic Fiber Construction in lab .pptx
Synthetic Fiber Construction in lab .pptx
 
BÀI TẬP BỔ TRỢ TIẾNG ANH GLOBAL SUCCESS LỚP 3 - CẢ NĂM (CÓ FILE NGHE VÀ ĐÁP Á...
BÀI TẬP BỔ TRỢ TIẾNG ANH GLOBAL SUCCESS LỚP 3 - CẢ NĂM (CÓ FILE NGHE VÀ ĐÁP Á...BÀI TẬP BỔ TRỢ TIẾNG ANH GLOBAL SUCCESS LỚP 3 - CẢ NĂM (CÓ FILE NGHE VÀ ĐÁP Á...
BÀI TẬP BỔ TRỢ TIẾNG ANH GLOBAL SUCCESS LỚP 3 - CẢ NĂM (CÓ FILE NGHE VÀ ĐÁP Á...
 
TESDA TM1 REVIEWER FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...
TESDA TM1 REVIEWER  FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...TESDA TM1 REVIEWER  FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...
TESDA TM1 REVIEWER FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...
 
Multithreading_in_C++ - std::thread, race condition
Multithreading_in_C++ - std::thread, race conditionMultithreading_in_C++ - std::thread, race condition
Multithreading_in_C++ - std::thread, race condition
 
The French Revolution Class 9 Study Material pdf free download
The French Revolution Class 9 Study Material pdf free downloadThe French Revolution Class 9 Study Material pdf free download
The French Revolution Class 9 Study Material pdf free download
 
Overview on Edible Vaccine: Pros & Cons with Mechanism
Overview on Edible Vaccine: Pros & Cons with MechanismOverview on Edible Vaccine: Pros & Cons with Mechanism
Overview on Edible Vaccine: Pros & Cons with Mechanism
 

Identify the two primary sources of stockholders equity- and which sou.docx

  • 1. Identify the two primary sources of stockholders equity, and which source would be considered to be internally generated? Solution Stockholders equity is built on two parts Paid Up capital: When initially shares are issued in an IPO to the public the stockholder's equity has two parts i.e. face value of shares and the additional paid up capital i.e. price at which share was sold in the IPO less the face value. Retained Earnings: Retained earnings form the second component of the Stockholder's equity. Each year a part of Net Income might be paid off by the company as dividend to preferred and common share holders. The amount left after paying dividends is called retained earning and is added to stock holder's equity. Retianed earnings are the internally generated source of stockholder's equity becasue it comes from the earnings of the organization which are generated by selling products and not by accessing capital markets.