Question
What is the difference between common stock and retained earnings?
Interesting Question? 
(2) 
(8)
(2) (8)
Answers (1)
11th Nov 2009 by Burt Carlson
Common stock is a form of equity ownership in a corporation. Owners of common stock are frequently called sharholders and as such have certain rights in most corporations. They can be paid dividends from the corporation profits and can benefit from the appreciation of the stock. Retained earnings is the net income (or loss) from the operation of the corporation. The payout of dividends to shareholders reduces retained earnings.
Common stock is a form of equity ownership in a corporation. Owners of common stock are frequently called sharholders and as such have certain rights in most corporations. They can be paid dividends from the corporation profits and can benefit from the appreciation of the stock. Retained earnings is the net income (or loss) from the operation of the corporation. The payout of dividends to shareholders reduces retained earnings.
Like This Answer? (2) (0)
This answer is the subjective opinion of the writer and not of FinancialAdvisory.com
(2) (0)
10th Nov 2009 In Stocks
1 Answers | 763 Views
Subjects: common stock,
retained earnings,