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Children often learn to associate pushing a vending machine button with the delivery of a candy bar. This best illustrates the process underlying
Contra Stockholders' Equity
Accounts on a company's balance sheet that have a negative balance, reducing the overall equity of stockholders.
Retained Earnings
The portion of net profits not paid out as dividends but retained by the company to be reinvested in its core business or to pay debt.
Paid-In Capital
The amount of capital "paid in" by investors during common or preferred stock issuances, including the par value of the shares themselves plus any additional paid-in capital.
Treasury Stock
Stocks that the original issuing company has repurchased, decreasing the total number of shares available for trade in the public market.
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