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The relationship between corporate assets and share

The relationship between corporate assets and share. Corporation as a asset owned by shareholders. ＝　 net assets. the number of issued shares. Initial assets making at the start-point. Invest non-workable capital. Corporate assets right after its birth. 500 元. 100shares 500 元.

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The relationship between corporate assets and share

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  1. The relationship between corporate assets and share

  2. Corporation as a asset owned by shareholders ＝　 net assets the number of issued shares

  3. Initial assets making at the start-point Invest non-workable capital

  4. Corporate assets right after its birth 500元 100shares500元 500元 per share× 100 share 　　　　　　　　　　　　　　　　　＝50000元

  5. Remember!What is the purpose of enterprises? • Proliferating (augmenting) collected capital fund and yielding profits • Corporate assets are always increasing or decreasing repeatedly

  6. Working corporation

  7. ＊which part increased? Initial capital invested 500元 for the initial capital and now…

  8. Initial investing and investinginnewissueofshares A Stupid ! It’s a waste of money ! Wao! I am going to invest! Doubled during 5 years ! B

  9. A You laughed at me 5 years ago !!! So… Looking at 5 years ago… A paid just 500 No ! Absolutely 1000元! B wants to buy at the price of 500…

  10. ＊in the case of declined assets… I do not want…

  11. A also wants to buy another… 50000→100000元 I want to buy another 500→1000 Issuing price will be 1000元

  12. However…share split!

  13. In the case of share split… • New shares absolutely belong to the current shareholders proportionately to their held shares. • The current shareholders do not have to pay !

  14. Spliting 1 to 2 Current shareholder C Sell one New investor The price will be 700元 The price of a share is now 500

  15. Corporation should have gotten ???? 元 C should not have gotten ????元

  16. If shareholders decide to issue new shares They will decide as they like not considering the merit of the corporation

  17. So how to arrange? Now we know we cannot think about the management. We will give up the power to issue new shares… OK! We will decide when and how to issue new shares.

  18. We prefer to collect new capital. • We make promise with new investor(s) to pay the market price ! • we offer the public subscription ! OK! However if you will not able to collect enough capital, let us decide the new issue of shares !

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