Posts Tagged ‘Common Stock’

How does purchasing stock of a company function as monetary support to them?

Friday, March 5th, 2010
ztim21 asked:


If I am against the business practices of Chiquita Banana and Nike, how does purchasing their common stock support them? Is merely holding then trading stock of these companies immoral?

What happens to my stock when a company emerges from bankruptcy?

Thursday, February 4th, 2010
smbisceg asked:


I own stock in a company that is getting ready to emerge from bankruptcy, with a new stock symbol. Will my stock be converted into the new stock symbol or stay the old symbol? Will my current stock be worth the same price as newly issued common stock? What will happen to my shares?

What is the difference between common stock and retained earnings?

Saturday, January 23rd, 2010
C27 asked:


which one:
1) the common stock account increases due to paid capital, while the retained earnings account increases due to profitable operations.
2) the common stock account may sometimes have a negative balance, while the retained earnings account is always positive.
3) common stock is an asset account, while retained earnings is a stockholders equity account.
4) common stock has a normal credit balance, while retained earnings has a normal debit balance.