Stock splits and stock dividends impact the number of common stock shares outstanding, and the increase in shares changes the weighted average shares of stock outstanding, and earnings per share. To explain the concepts, start with a journal entry for issuing common stock: On February 1st, Premier Manufacturing issues 20,000 shares of $5 […]
It’s the summer of 2021, and the market is on a tear. As of 7/27/21, the Standard and Poor’s 500 Index (a basket of 500 large company stocks) is near a record high- up nearly 36% in the last 12 months. So, if you’re an investor, how much are you earning on your stock […]
The weighted average shares outstanding calculation is the number of common stock shares outstanding, adjusted for stock splits, stock dividends and other factors. To understand the weighted average shares outstanding example below, you need to review diluted weighted average shares outstanding. The number of shares outstanding formula also adjusts for the number of months a […]
Skimming the online version of The Wall Street Journal each day will have a massive impact on your ability to understand investing. “Well, that’s a pretty bold statement.”
So, I overheard a Dad say something interesting to his 4-year old son (at least he looked to be about 4). His son asked him a question and he said: “I just answered that question, so I’m not going to answer it again”. That approach would have saved me a lot of time when my […]
So, I saw something the other day that I’ve never seen before. I was coming out of a grocery store that was up a hill from a major street, and a truck was approaching the intersection. The truck was hauling a bulldozer on a flatbed trailer and, as the truck approached the intersection, it […]