Issuance of Shares - Part IIA

This is the third part of five related lessons concerning the issuance of securities by a corporation. The first lesson, Types of Securities, deals with equity and debt securities. The second lesson, Issuance of Shares Part I, deals with corporate law legal capital provisions, including the concept of par, applicable to the issuance of equity securities (shares of stock). This, the third lesson, Issuance of Shares Part IIA, deals with the proper type of consideration used to pay for equity securities. The fourth lesson, Issuance of Shares Part IIB, deals with the proper amount of consideration used to pay for equity securities. The fifth lesson, Issuance of Shares Part III, deals with all other issues related to the issuance of equity securities, and also deals with the issues of preemptive rights. These five lessons should be completed in sequence. Students should not begin this lesson until the previous lessons have been completed.