Legal capital
Value at which a company's shares are recorded in its books.
Similar financial terms
Legal investments
Investments that a regulated entity is permitted to make under the rules and regulations that govern its investing.
legal capital
The par value of common and preferred stock.
» For more clarity on this term: ...
Legal capital is the share capital of the company as recorded in its equity accounts. Dividends may not be paid from share capital without permission from creditors.
Legal responsibility ...
Manning, Bayless. Legal Capital. Mineola, N.Y.: Foundation Press, 1977.
Roe, Mark J. Strong Managers, Weak Owners: The Political Roots of American Corporate Finance. Princeton: Princeton University Press, 1994.
Footnotes ...
Thus, par value is said to represent the 'legal capital' of the firm. In theory, original purchasers of stock are contingently liable to the company for the difference between the issue price and par value if the stock is issued at less than par.
The par value represents the legal capital per share. There can be no dividend declared that would cause the stockholders' equity to go below the par value of the outstanding shares.
(abbreviation)
Legal Capital (in accounting)
Half-Stock (finance term)
perchance
No-Par-Value Capital Stock (in accounting)
Par Bond (business term)
Nominal Capital (in accounting)
Paid-in Surplus (business term) ...
states allow no-par stocks to have a stated value, set by the board of directors of the corporation, which serves the same purpose as par value in setting the minimum legal capital that the corporation must have after paying any dividends or buying ...
A computerized database maintained by the NYSE to keep track of enforcement actions, audits, and complaints against member firms. This term is not an acronym but is referred to in capitals.
Legal capital ...
It may also refer to the method of valuating no-par-value stock where the portion of the amount contributed is credited to the capital stock account and the balance is credited to paid in capital. Or 2. the legal capital of a company.
 See also: Long-term asset, Financial leverage, Bank loan, Capital structure, Long-term assets
  
|
RSS
