Issuance of Shares - Part IIB

This is the fourth part of five related lessons concerning the issuance of securities by a corporation. These lessons should be completed in sequence. 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). The third lesson, Issuance of Shares Part IIA, deals with the proper type of consideration used to pay for equity securities.

This lesson, Issuance of Shares Part IIB, deals with the amount of consideration used to pay for equity securities. The fifth and final lesson, Issuance of Shares Part III, deals with all other issues related to the issuance of equity securities, and also deals with the issue of preemptive rights. Students should not complete this lesson before completing the previous lessons.