What Are the Factors Governing Dividend Decisions?

Factors Governing the Dividend Decision

Dividends are an essential aspect of a company’s financial strategy. It is the distribution of profits to shareholders, which can be in the form of cash or additional shares. The decision to pay dividends is crucial and requires careful consideration by the company’s management team. Several factors govern this decision, such as financial performance, growth […]

Meaning of Treasury Stock and Its Accounting Treatment

meaning of treasury stock

Treasury stock is the stock issued by the company and may later be reacquired by the company from its shareholders. The company may retire or cancel these stocks. The reacquired stock which is not retired by the company is called “treasury stock”. Treasury stock is not an asset for the company. A company creates its […]