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In order to share shares equally within a company, one would need to divide the shares equally among the initial shareholders. If there are 5 people with shares in a new company, each person should have 20% of the initial shares.

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Q: How do you share shares in a new company of 5?
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How does a stock buy back work?

The board of directors for a company will announce that they have decided to buy back their own shares from the current outstanding shares and then retiring those shares. A Company may do this for several reasons but the main reason is to increase the value of the stock price for the share holders. If a company has 10 million outstanding shares and a current stock price of $5/share (keep in mind the market cap would be $50 million). The company announces that the board has authorized the repurchase of 5 million shares. Then the company will typically buy those shares back throughout the year(or whatever time frame) reducing the outstanding shares to 5 million from the initial 10 million. Let's say that miraculously the company was able to purchase all 5 million shares at $5/share. So they spend $50 million buying back the stock. If I was wealthy shareholder and own 1 million shares of the company then before the buyback I owned 10%(my shares / total outstanding shares....1 milliion/10million) of the company. After the buyback there are now 5 million shares so I own 20% (1 million / 5 million) of the company. If the stock remains at $10/share after the buyback then the the market cap is now 25 million, but if shareholders thought the value of company was worth 50 million before the only thing that has changed after the buyback is the number of outstanding shares. So that means the price should increase to make the market cap go back up. So the idea is when a company buys back stock they increase the value of each share to the shareholder by increasing their ownership in the company. In our case the price of the stock should now be $10/share making the market cap 50 million again ($10/share x 5 million shares = $50 million). So buybacks are an alternative to dividends as a method for a company to return value to the shareholders.


How can a company pay dividend without affecting its cash balance?

Company can pay dividend in the form of bonus share without affecting the cash balance. For example if some one has 10 shares of $10 each, company simply can give him dividend of 5 bonus shares and now that person have 15 shares of total $100. So before bonus shares 10 shares of total of $100 Now 15 shares of Total of $100 In this way per unit share value reduce but company don;'t have to pay anything from cash and in this way cash balance doesn;t affected.


What is net asset per share?

This is the same thing as book value per share. Net asset value is Total Assets - Total Liabilities. You take this number and divide it by the shares outstanding in the company, and you get net asset per share. Example: AT&T Total Assets: 1000 Total Liabilities: 500 Net asset value: 500 Shares outstanding:100 Net Asset per share: $5


Calculating a firms total market value?

Market value or Market capitalization is the total value of all the shares of that company at the current trading day. For example, if there are 100,000,000 shares of XYZ limited and each share is trading at $5 per share, then the total market value or market capitalization of the company is $500,000,000/-


Does equity financing cause a dilution of ownership?

Yes. but if old investors donot buy more shares with same ratio in new offering, but old shareholders again buy more shares with the old ratio in new offering then there is no change in the ownership of shareholder.For example if a company has $ 100 Equity and one shareholder holds $10 in company capital then he has 10 % share.Now if company issue $100 more equity to new share holders then total equity capital raise to $200 but that share holder doesnot purchase more share in new issue and his investment remains at $10 so now his share in company's share capital becomes:10/200 = 5%So it shows if old investor do not buy from new offering equalls to old ratio of 10% in new offering then his ownership share has dilluted but if he buys 10% more from new offering then his share will be10 + 10 = 20/200 = 10%Hope it will answer your question.


Will barclays shares go up?

yes they will be patient at least a 5 share


The journal entry to issue 1000000 shares of 5 dollars par common stock for 7dollars per share on January 2nd would be?

debit cash 70000000credit shares in share capital 5000000credit premium on shares capital 2000000


What is the percentage of minimum share application money?

minimum 5% of face value of shares


You own 240 shares of stocks in a computer company The company declares a stock split of 5 shares for every 3 owned How many shares of stock will you own after a stock split?

240/3= 80. 80 times 5 is 400.


Equity share capital?

Total equity share capital of a corporation is the product of number of shares issued times current market price. If XYZ corporation has 100 Million shares outstanding and the current market price is $5 per share, then total share capital is 100 Million x $5 = $500 Million


What are the benefits of holding a company's share?

1. If you hold shares of a company, you are one of the owners of that company. Every year the company would send you its annual statement, its profit & loss accounts etc. Also if they have made a good profit, they would even declare a Dividend. A Dividend is something like Interest that you receive from a bank for holding a deposit with it. The only difference is that you may or may not get Dividends. Assuming you hold 100 shares of XYZ limited and they declare a dividend of 50% per equity share it means you would be getting Rs. 5/- per share that you hold in the company. The Dividend % that any company declares is on the Face value of its share. That is you would be getting Rs. 500/- as a dividend. 2. Whenever the company takes any major decisions like change of the CEO or Acquisition of another company etc, you would be communicated. There would be a share holders meeting and only if at least 51% of the company's share holders approve the corporate action would happen. 3. As you know, the shares of the company would be traded in the secondary market everyday. Say after 3 months the Market value of the share of XYZ limited has become Rs. 70 per share, you can sell the shares of XYZ and make Rs. 7000/- which is a profit of Rs. 2000/- in 3 months


What is the entry of bonus share shares 100000 1 bonus shares for every 5 shares now what is the acquesition cost?

cash (100000x5) 500,000 capital stock(100,000x5) 500,0000