👥 Common Stock
What is it? Ownership shares in a company
Impact: Increases equity
Pros: Voting rights
Cons: Last to be paid in liquidation
👑 Preferred Stock
What is it? Ownership with preference for dividends
Impact: Increases equity
Pros: Higher claim on assets
Cons: No voting rights
💰 Retained Earnings
What is it? Net income that is retained, not paid as dividends
Impact: Increases or decreases equity
Pros: Can be used for growth
Cons: No immediate return to shareholders
📈 Additional Paid-In Capital
What is it? Capital received from investors above the par value of stock
Impact: Increases equity
Pros: More capital for operations
Cons: Possible dilution of ownership
💼 Treasury Stock
What is it? Shares bought back by the company
Impact: Decreases equity
Pros: Increases earnings per share
Cons: Reduces capital for growth
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