Universal Energy Corp (UVSE)

[eddy2]

So from the public company act of 1940 it has been established that capital surplus is collateral while retained earnings is debt still owed.


One group of share holder will underwrite for the second group and so on building capital along the way.

The difference of the liability and assets is the collateral
put up for the liability from equity purchased.


Treasury stock is built up collateral to purchase more debt and equity from the underwriters of the debt to pay down the debt.

Collateral holders has first rights to payment should a default in payment take place or if there is a write down in asset value to under value the required collateral for the debt known as a deficit to what was paid to
aquire the collateral to push forward growth ahead.

The deficit is noted under retained earnings that is often trigured by depreciation as well as falling comodity prices for goods and services in a falling market place.