Sidonia

What Is Contributed Surplus?

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Contributed surplus is the portion of a company’s stockholders’ equity that arises from transactions in which the fair value of the consideration received by the company is greater than the par value of the shares issued. For example, if a company issues shares with a par value of $1.00 per share for $5.00 per share, … Read more

What Is a Cedent?

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A cedent is an insurance company that cedes, or transfers, risk to another insurance company. The ceding company pays a premium to the assuming company in exchange for assuming the risk. Cedents are also known as policyholders. What is reinsurance in simple words? Reinsurance is a type of insurance that protects insurance companies from losses … Read more