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21 Cards in this Set

  • Front
  • Back
Each year, public companies must send their shareholders an annual report that contains detailed financial data.
Annual report
Stock that has been approved by the corporation's charter and subsequently sold.
Authorized and issued stock
Stock that has been approved by the corporation's charter but has not yet been sold.
Authorized and unissued stock
Long-term debt secured by some of the issuing company's assets.
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.
Business judgment rule
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.
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.
Common stock
Long-term, unsecured debt, typically issued by a corporation
A lawsuit brought by shareholders in the name of the corporation to enforce a right of the corporation.
Derivative action
A corporation is a domestic corporation in the state in which it was formed
Domestic corporation
A corporation formed in another state.
Foreign corporation
The person who signs a corporate charter.
Records of shareholder meetings and directors's meetings are kept in the corporation's minute book.
Minute book
Owners of _____________ have a right to receive dividends and liquidation proceeds of the company before common shareholders.
Preferred stock
The person who creates a corporation by raising capital and undertaking the legal steps necessary for formation.
(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.
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.
Proxy statement
The number of voters that must be present for a meeting to count.
To vote at a shareholders meeting, a shareholder must own stock on the ___________.
Record date
Anyone who is affected by the activities of a corporation, such as employees, customers, creditors, suppliers, shareholders, and neighbors.
Stock that has been bought back by its issuing corporation.
Treasury stock