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21 Cards in this Set
- Front
- Back
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Each year, public companies must send their shareholders an annual report that contains detailed financial data.
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Annual report
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Stock that has been approved by the corporation's charter and subsequently sold.
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Authorized and issued stock
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Stock that has been approved by the corporation's charter but has not yet been sold.
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Authorized and unissued stock
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Long-term debt secured by some of the issuing company's assets.
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Bonds
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A common law rule that protects managers from liability if they are acting without a conflict of interest and make informed decisions that have a rational business purpose.
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Business judgment rule
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A document that specifies the organizational rules of a corporation or other organization, such as the date of the annual meeting and the required number of directors.
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Bylaws
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Certificates that reflect ownership in a corporation. Owners of this equity security are last in line for corporate pay-outs, such as dividends and liquidation proceeds.
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Common stock
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Long-term, unsecured debt, typically issued by a corporation
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Debentures
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A lawsuit brought by shareholders in the name of the corporation to enforce a right of the corporation.
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Derivative action
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A corporation is a domestic corporation in the state in which it was formed
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Domestic corporation
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A corporation formed in another state.
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Foreign corporation
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The person who signs a corporate charter.
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Incorporator
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Records of shareholder meetings and directors's meetings are kept in the corporation's minute book.
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Minute book
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Owners of _____________ have a right to receive dividends and liquidation proceeds of the company before common shareholders.
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Preferred stock
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The person who creates a corporation by raising capital and undertaking the legal steps necessary for formation.
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Promoter
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(1) A person whom the shareholder designates to vote in his place. (2) The written form (typically a card) that the shareholder uses to appoint a designated voter.
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Proxy
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When a public company seeks proxy votes from its shareholders, it must include a proxy statement. This statement contains information about the company, such as a detailed description of management compensation.
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Proxy statement
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The number of voters that must be present for a meeting to count.
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Quorum
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To vote at a shareholders meeting, a shareholder must own stock on the ___________.
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Record date
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Anyone who is affected by the activities of a corporation, such as employees, customers, creditors, suppliers, shareholders, and neighbors.
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Stakeholders
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Stock that has been bought back by its issuing corporation.
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Treasury stock
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