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24 Cards in this Set

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  • Back
How corporations raise money.
Capitalization
Equity financing is done through.
Stocks
Debt financing is done through.
Bonds
Is a corporation required to pay dividends or repay principal?

Who decides dividends?
No


The board of directors.
The specific number of shares, aothorized in a corporate charter, to be sold.
Authorized shares
Authorized stock that has not yet been sold sold to investors.
Issued shares
How corporations raise money.
capitalization
equity financing.
Stocks
debt financing
bond
specific number of shares authorized in the corporate charter to be sold.
Authorized Shares
Authorized stock that has been sold to investors.
Issued shares
Authorized stock that has not yet been sold.
Unissued Shares
Issued shares currently in the hands of the public.
Outstanding stock
Stock which was sold to the public but has been reacquired by the corporation.
Treasury Stock
- Limit access to corp. books.
- Final clam (residual) on assets at bankrutcy.
- Dividends if declared.
- Voting privileges
- Premptive Rights.
These all decribe what?
Rights
of the common stock holder.
Two types of voting privileges.
Regular (statutory)
must split votes evenly

Cumulative(benefit sm investors)
may cast votes in any manner
Rights to maintain proportionate ownership by buying shares of a mew issue of common stock before the public at a discount.
Preemptive Rights
*Prior claim to dividends and assets upon bankruptcy.
*Fixed dividend
*Optional features
Preferred Stock
Preferred Stock Option that:
Allows dividends to accrue from years skipped.
Cumulative
Preferred Stock option that converts into fixed number of shares of common stock
Convertible
Preferred Stock option that allows the corporation to retire the stock.
Callable
Preferred Stock Option that may pay extra dividend.
Participating
A vehicle for trading foreign stock in the U.S.
American Depositary Reciept
(ADR)
*Responsible for keeping names of holders of record and for handling rights and warrants and making final decision on good delivery (Stock Power)
Transfer Agent