Week 3 Team Reflection
Nereyda Bravo, Kolton Wentworth, and Randolph Rodarte
ACC/291- Principles of Accounting
September 09, 2013
Stephen Wilson

Week 3 Team Reflection
The issuance of different stocks by corporations is a topic that we are getting a better understanding of through reading the text and studying the Wiley plus texts. Authorized stock is the amount of stock that a corporation is authorized to sell as indicated in its charter, and within that broad spectrum are many different kinds of stock that the corporation can chose to sell. Examples of those stocks are par-value stock and no-par value stock. A par value stock is capital stock that has been assigned a value per share in the corporate charter, and a no par value stock is stock that has not been given a value. Preferred stock is capital stock that has some contractual preferences over common stock. With regards to the name “preferred”, it means that the corporation gives an unsecured dividend and does not have to pay that dividend back, however preferred stockholders have to be paid dividends before common stock holders.
Public corporations issue various forms of stock to meet specific internal requirements and to satisfy public demand. From initial public and secondary offerings to different classes of stock, companies access the public markets to raise funds for expansion and debt repayment, as well as to allow original investors and owners to cash out and diversify their portfolios. Each of the different types of stock represents a form of ownership.
Common stock is the most common and entitles shareholders to dividends when applicable and voting rights for the board. Common stock takes a lower priority than corporate bonds, preferred shares, and company creditors. Preferred stock conveys ownership and takes priority over common stock if a company must liquidate or declares bankruptcy.