No. of Recommendations: 1
Hi All,

I've started reading the book "Select Winning Stocks Using Financial Statements", and I'm a whole 20 pages in. In the book the author uses Procter & Gamble's financials for the majority of his examples. While that is fine with me, I'm someone who learns best by doing then just by watching. So, I decided to look at another company's financials as I go through the book trying to identify the corresponding sections and numbers. I'm not so interested in trying to find another company in the same market sector. In fact I figure it's better to look at a completely different sector since I'm not trying to compare P&G with anyone (at least not yet anyway). So I picked The Coca-Cola Company's (KO) 2000 10-K as the company to cut my teeth on (or at least what's left of them after a lifetime of drinking their products). Well, I've gotten to the front cover and I've already got questions. Under the section “Title of each class” (referring to the securities registered on the NYSE) it says:

COMMON STOCK, $.25 PAR VALUE

I understand the phrase “common stock” (the stock that I can buy on the NTSE) and I understand the phrase “par value” (the value of the stocks at issuance) and I've got a quarter to cover the $.25. But, when you put the whole thing together, what does it mean? Are they saying “if you were to take the profits of all our initial stock sales and divide them by the number of shares outstanding, each would have been worth $.25 to the company”?

Perhaps I'm trying to understand too much at this point in my investing career, but if there's some place I can buy KO's stock for a quarter, I'm there!

bb99
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