188. Discuss the various laws and contracts that govern the rights and obligations of a shareholder.
189. Discuss callable preferred shares from the issuer’s point-of-view.
190. What are convertible bonds and convertible preferred stock and how does U.S. GAAP and IFRS account
for their issuance? Describe the accounting for conversion of convertible bonds and convertible preferred.
191. Discuss corporate distributions to shareholders.
CORPORATE DISTRIBUTIONS
192. Discuss the reasons that investors buy preferred stock and the dividend rights of preferred stockholders.
193. Why do corporate directors usually declare dividends less than the legal maximum and thereby allow
retained earnings to increase as a matter of corporate financial policy?
194. Discuss the accounting for a firm paying dividends in cash, other assets, or shares of its common stock.
ACCOUNTING FOR DIVIDENDS
195. Describe the accounting for stock splits and reverse stock splits.
STOCK SPLITS
196. Discuss why firms repurchase their own stock?
STOCK REPURCHASES
197. Discuss the accounting for treasury shares.
ACCOUNTING FOR TREASURY SHARES
198. Discuss how stock warrants are used.
Stock Warrants
199. Describe the accounting for employee stock options (ESOs).
200. Compare the features of stock options and stock rights. What are stock warrants?
201. Corporations often sell, or exchange for goods and services, various call options on their shares. Describe
the process of issuing call options.