Issuance of Shares - Part I

This is one of a series of lessons dealing with the issuance of shares by a corporation. Before beginning this lesson, you should have completed the lesson "Types of Securities" or have an understanding of notes, bonds and debentures, common and preferred stock, and rights and warrants. This lesson focuses on basic concepts and terminology and addresses issues contained in what are called the legal capital provisions of corporate codes. You will encounter equity capitalization, par value, capital, capital surplus and earned surplus accounts in a balance sheet.