Cincinnati Contract Attorneys & Lawyers

What is Authorized Stock?

Authorized stock is the number of shares a company is allowed to give away to shareholders. This number is stated in the company's charter. In the United States, this is called the Articles of Incorporation.

Authorized Stock is also called authorized capital stock, authorized shares, or authorized share capital. This number can only be changed if the current shareholders approve it. This is done with a vote (and a lot of paperwork). Due to this, many companies have a higher authorized stock number than the number of stocks they plan to issue.

Why Are Authorized Shares Important?

• Many states and international arti

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Updated August 18, 2020: 

In the business world, companies merge all the time. Today startups are doing the same to expand and change the way they do business. An acquisition involves buying a company and changing it to fit the way you do business. The goal is to create a new company made of the best parts of your business and the proven parts of another.

A startup would buy another business for various reasons. These reasons include access to new technology and access to new markets. Buying a company can mean being able to make new products and having access to new resources or fresh management talent. However, if you handle an acquisition poorly, your business could take on the mistakes of a broken organization and heavy losses.

Here is a step-by-step guide of how a startup acquires another company.

1. Make a Plan

Look at the reasons to buy a compan

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Updated June 26, 2020:

To start a transportation business, you will need to decide which type of business you intend to create. Options include: a taxi service, bike rental, limousine service, owner/operator trucking, moving company, specialized transportation service, livestock transportation, transporting boats, air transport, marine shipping, medical transport or services for seniors. The type of company you use to establish should be determined based, among other things, on the need and competition in the area you decide to work in. Once you figure out what you want to transport,you'll need to build a plan to establish how you are going to provide these services.

Determine What Kind of Business You Want

Do you want to run a sole proprietorship,

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What Are Cumulative Dividends?

If a dividend is sharing company profits to shareholders, then a cumulative dividend is a distribution made to the holders of special "preferred" shares regularly. It is unrelated to company profits.

Regular or "noncumulative" dividends are voluntary. This means the Board of Directors has the option of awarding them. This usually depends on how the company has performed each year.

However, paying cumulative dividends is mandatory. If the company can't pay out a cumulative dividend in any given fiscal year, the amount for that year is carried forward. It must always be paid out before any payments to common shareholders.

Not all "preferred shares" have the right to receive cumulative dividends. Some cumulative preferred shares carry limitations. For example, the company may only have to pay cumulative

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