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31 Cards in this Set

  • Front
  • Back
What are the three types of business organizations?
1.Individual Proprietor
2.General Partnership
The two basic ways that a corporation raises money is by debt securities and equity securities otherwise know as _______ and _________.
Debt securities are known as Bonds. (Debt Capital)
Equity securities are known as Stocks. (Equity Capital)
A unit of corporate ownership is know as a _________.
A corporation is subject to governmental control and operates under a ______ granted by the state. The Birth Certificate so to speak.
The Charter
Two Broad classes of stocks that a corporation may offer.
1. Common Stock
2. Preferred Stock
An absentee ballot is made available for those shareholders who vote by mail. What is this ballot called.
A Proxy
Being a stock holders gives you voting privileges. What type of voting privilage gives
you 300 votes per vacancy assuming you held 300 shares?
Statutory (Regular) Voting
You hold 300 shares of stock. there are three vacancies. You have 900 votes to place wherever you want. This is called ______
Cumulative voting
The shares of stock that the State permits with the original incorporation charters are known as ______________ shares.
The portion of authorized stock that is actually sold to investors is called __________ shares .
That portion of authorized stock that has not yet been issued or sold is __________ shares.
Issued shares currently in the hands of investors are known as ________ stock.
The total value of the shares of a company, which is determined moment by moment in the open market by multiplying the current price of shares of commom stock by the number of outstanding shares. This number indicates the ________ __________ of the company.
Market capitalization
Companys are generally categorized by Large Cap,Mid Cap and small cap. What are the values of each?
Large Cap = exceeding 5 billion
Mid Cap= Between 1 billion and 5 billion
Small Cap = under 1 billion
An absentee ballot is also known as a ____________.
T/F Treasury Stock is issued stock but since it is no longer in the hands of investors it is not considered to be outstanding stock.
T/F Treasury stock does not vote
or receive dividends and is not considered to be outstanding stock.
T/F All Stock has a par value.
The method by which an investor usually purchases foreign corporate stock that simplifies the trading process by depositing the stock in an oversees bank and issuing an
__________ __________ _______.
American Depositary Receipt
A new offering of stock to current stock holders ate a price somewhat below the current
market price allows current stock holders to excercise their _______ ________.
Pre-Emtive Rights
A security issued by some corporations gving the holder a right to purchase new shares at a later date for a stupulated price. Usually attached to a bond as a sweetener.
Contracts to buy 100 shares of stock are called _______ _____.
Contracts to sell 100 shares of stock are called ______ _____.
Call Option

Put Option
What is the most often used unit of trading?
What is it often refered to as?
Anything less would be refered to as?

A Round Lot

An Odd Lot
When a corporation raises money privately, usually 1-35 large institutional investors is is known as _________ _________.
Private Placements
A Private Placement stock is known as a Restricted Stock. What makes it restricted?
The stock owners sign an agreement and are restricted from selling their stock for at least 1 year in the open market place. Violators are Called Statutory Underwriters.
T/F In a Stock Split, the number of outstanding stocks increased while the par value decreases.
When a corporation pays out a dividend in the form of more stock. this is called a ______
Stock Dividend
A type of Stock that pays a fixed dividend and has claims to dividends over common stockholders is known as ________ Stock.
What are the three "C"s when refering to the special features of Preferred stock?
Cummulative Dividend - missed dividends must be repaid.

Convertible - pref can be exchanged for common stock.

Callable - the corporation my call back the stock at a predetermind price.
The institution, a bank, trust company, etc... who is responsible for the efficient transfer of securities from one owner to another is the _______ _________.
Transfer Agent
One special feature of some preferred stock is one where if a corporation's earnings decline drastically and is not able to pay dividends the company will pay the missed dividend in arrears is called a.
cummulative preferred stock