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24 Cards in this Set

  • Front
  • Back
The amount of stock that a corporation is authorized to sell as indicated in its charter.
Authorized stock
A pro rata distribution of cash to stockholders.
Cash dividend
A feature of preferred stock entitling the stockholder to receive current and unpaid prior-year dividends before common stockholders receive any dividends.
Cumulative dividend
The date the board of directors formally declares the dividend and announces it to stockholders.
Declaration date
A debit balance in retained earnings.
Dividend A distribution by a corporation to its stockholders on a pro rata (equal) basis.
Preferred dividends that were scheduled to be declared but were not declared during a given period. (p. 000)
Dividends in arrears
The amount per share of stock that must be retained in the business for the protection of corporate creditors. (p. 000)
Legal capital
Capital stock that has not been assigned a value in the corporate charter. (p. 000)
No-par value stock
The amount paid in to the corporation by stockholders in exchange for shares of ownership. (p. 000)
Paid-in capital
Capital stock that has been assigned a value per share in the corporate charter. (p. 000)
Par value stock
The date dividend checks are mailed to stockholders. (p. 000)
Payment date
A measure of the percentage of earnings distributed in the form of cash dividends to common stockholders. (p. 000)
Payout ratio
Capital stock that has contractual preferences over common stock in certain areas. (p. 000)
Preferred stock
A corporation that has only a few stockholders and whose stock is not available for sale to the general public. (p. 000)
Privately held corporation
A corporation that may have thousands of stockholders and whose stock is regularly traded on a national securities market. (p. 000)
Publicly held corporation
The date when ownership of outstanding shares is determined for dividend purposes. (p. 000)
Record date
Net income that is retained in the business.
Retained earnings
Circumstances that make a portion of retained earnings currently unavailable for dividends. (p. 000)
Retained earnings restrictions
A measure of profitability from the stockholders’ point of view; computed by dividing net income minus preferred stock dividends by average common stockholders’ equity. (p. 000)
Return on common stockholders’ equity ratio
The amount per share assigned by the board of directors to no-par stock that becomes legal capital per share. (p. 000)
Stated value
A pro rata distribution of the corporation’s own stock to stockholders. (p. 000)
Stock dividend
The issuance of additional shares of stock to stockholders accompanied by a reduction in the par or stated value per share. (p. 000)
Stock split
A corporation’s own stock that has been issued, fully paid for, and reacquired by the corporation but not retired. (p. 000)
Treasury stock