21. The main source of paid-in-capital is from issuing stock.
22. Some corporations have stopped issuing stock certificates to stockholders.
23. The number of shares of outstanding stock is equal to the number of shares authorized minus the number of shares issued.
24. The amount of capital paid in by the stockholders of the corporation is called legal capital.
25. If the dividend amount of preferred stock, $50 par value, is quoted as 8%, then the dividends per share would be $4.
26. Although preferred stockholders have a greater chance of receiving a regular dividend, common stockholders have a greater chance of receiving large dividends.
27. If 50,000 shares are authorized, 41,000 shares are issued, and 2,000 shares are reacquired, the number of outstanding shares is 43,000.
28. Preferred stockholders must receive their current year dividends before the common stockholders can receive any dividends.
29. If a corporation is liquidated, preferred stockholders are paid before the creditors and before the common stockholders.
30. Paid-in capital may originate from real estate donated to the corporation.