Dividends are a portion of the company’s earnings to be distributed to its shareholders, based on the board of directors’ decision. Dividends are quoted as Dividend Per Share (DPS) or dividend yield. Most companies having stable and secure growth offer dividends when their share prices become stagnant. However several companies do not offer dividends since [...]
Starting a business venture is a dream of many usually due to misconceptions about not adhering to strict time constraints and not answering to a boss. However, not everyone can go through all the complexities of starting a business and it usually consumes more time than a normal job with your customers taking the place [...]
The government treats corporations as separate entities that can buy, sell and lease properties, enter into contracts, sue and be sued. Specifically, there are many advantages of incorporating in Delaware. People form corporations to enjoy the benefits that incorporating offers, such as, limited liability protection. Their personal assets are safe and the shareholders are not [...]
An initial public offering (IPO) is the initial sale of the common shares of a company or corporation to public investors. A corporation issues an IPO to raise capital. IPOs come with a host of compliance regulations and other legal requirements. The term IPO refers to only the first public issuance of a company’s shares. [...]
Unsecured business lines of credit are the most difficult form of credit to be obtained from a bank or financial institutions. Applicants of these loans have to meet many criteria such as having been in business for a minimum of one year, having a credit score of more than 680, and having a good credit [...]
When you confirm that the balance in your checkbook is in sync with your corresponding bank statement, it is known as account reconciliation. Any record that you keep regarding your financial transactions with banks, credit card companies, or retail stores is known as an account. It is an arrangement between buyers and sellers in which [...]
Insider trading is the trading of a company’s shares by people who work for the company, such as senior level executives, directors and those who own more than 10% of the total shares. Insider trading is illegal since the trading is based on some privileged information that the insider has access to, but is not [...]