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20 Cards in this Set
- Front
- Back
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Additional paid-in capital |
The amount received from the issuance of stock in excess of the par value of the stock. Alternate term: paid in capital in excess of par |
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Authorized shares |
The maximum number of shares a corporation may issue as indicated in the corporate charter |
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Callable feature |
Allows the corporation to eliminate preferred stock by paying the stockholders a specified amount |
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Convertible feature |
Allows preferred stock to be exchanged for common stock |
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Corporation |
A business owned by one or more individuals in which the business and owner(s) are separated legal entities, with the characteristic of limited liability for the owner(s) |
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Cumulative feature |
The right to dividends in arrears before the current year dividend is distributed |
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Dividend |
The distribution of the profits of a corporation to stockholders, generally paid in cash. (See stock dividend below) |
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Issued shares |
The number of shares issued (sold) to stockholders |
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Market value per share |
The selling price of a stock as indicated by the most recent transactions |
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Outstanding shares |
The number of shares issued less the number of shares held as treasury stock |
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Par value |
An arbitrary amount that represents the legal capital of the firm |
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Participating feature |
Allows preferred stockholders to share on a percentage basis and the distribution of an abnormally large dividend |
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Partnership |
A business owned by two or more individuals in which the business and owners are one legal entity, and with the characteristics of unlimited liability for owners |
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Retained earnings |
Net income earned by the corporation but not declared as a dividend |
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Retirement of stock |
When the stock is repurchased with no intention to reissue at a later date |
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Sole proprietorship |
A business owned by a single individual in which the business and owner are one legal entity, and with the characteristic of unlimited liability for the owner |
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Statement of stockholders equity |
Reflects the differences between beginning and ending balances for all accounts in the stockholders equity category of the balance sheet |
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Stock dividend |
The distribution of the profits of a corporation to stockholders through the issuance of additional shares of stock to existing stockholders |
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Stock split |
The issuance of additional shares of stock with the specific purpose of reducing the market value of the stock with no effect on retained earnings |
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Treasury stock |
Stock issued by the firm and then repurchased but not retired |
