How do you value an option to buy common stock?

Article Abstract:

Common stocks are usually offered by companies to raise capital, as an incentive for the company's investors, incentive for key employees to stay with the company. A formula has been developed to allow business owners to compute values of common stock. This computation can also be done when effecting a buy-sell agreement, selling stock to company outsiders and transferring ownership to one's family or as gifts to spouses and heirs.

Evaluation, Options (Finance), Stock options

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Should You Buy Back Stock Owned by Minority Stockholders?

Article Abstract:

Insight into the effects of corporate stock redemption is given. The purchase of outstanding common stock negatively affects the company's cash and stockholders' equity accounts. However, the equity position of stockholders will increase a positive effect. Book value per share declines, but earnings per share increase. Other considerations are outlined which can influence a decision to buy back common stock.

Standards, Securities, Stock transfer, United States. Department of the Treasury

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Common stock: what is it, how to use it

Article Abstract:

An explanation of how a company can raise capital by selling common stock is presented.

Common Stocks, Stocks, Study and teaching, Capital stock, Finance, Capital

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