Differentiate Between External and Internal Transaction Costs

question 87

Essay

Differentiate between external and internal transaction costs.

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, set at the time it is issued.

Corporate Charter

A legal document that establishes a corporation and outlines its structure, powers, and operational guidelines.

Issued Shares

The number of shares that a company has legally sold to investors, including both public and private offerings.

Common Stock

Common stock represents ownership shares in a corporation, giving holders voting rights and a share in the company's profits through dividends or stock price appreciation.