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Which 2 things related to the contributed capital must be disclosed?

A) Names of investors and their salaries.
B) Stock issuance and stock repurchase activities.
C) Board meeting minutes and financial forecasts.
D) Employee benefits and company culture.

1 Answer

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Final answer:

The two things related to contributed capital that must be disclosed are stock issuance and stock repurchase activities. These activities are essential disclosures for transparency and for stakeholders to understand the company's financial health and strategies.

Step-by-step explanation:

Two things related to the contributed capital that must be disclosed are B) stock issuance and stock repurchase activities. Contributed capital refers to the amount of money that a company raises through the sale of its stock. When a company issues stock, it increases its visibility in financial markets and gains access to capital for expansion without the burden of repayment obligations. However, stock issuance involves significant costs and requires compliance with reporting requirements to various stakeholders, including shareholders and government agencies like the SEC.

On the other hand, if a company decides to repurchase its own stock, it is effectively reducing the amount of outstanding shares, which can influence the company's stock price and shareholder value. These stock-related activities have direct implications on the financial health and strategic direction of the company, guided by decisions made by the board of directors and influenced by the needs of the shareholders. Hence, disclosure of such activities is essential for maintaining transparency and for the proper functioning of financial markets.

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