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8 Cards in this Set

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  • Back
Authorized Stock (Authorized Shares)
Corporation Charter limits the number of shares it may isse. This Allowed Amount is referred to as " Authorized Stock"
Unissued Stock
This stoke that is authorized but not yet issued by the corporation. Most firms issue less stock that has been authrized and hold the remaider for future use.
Issued Stock
The portion of the issued stock sold to inverstors.
Outstanding stock
Issued shares currently in public hands. Note that htis is not necessarliy identical with issued stock because some issued stick is considereed treasurey stock.
Treasurey Stock
Outstanding stock that has been reacquiered by the corporation, through purchase in the open market or by other means, is called treasury stock. Threasury stock can be held, reissued, or retired. It is not considereed outstanding stock. Treasurey stock carries no right to vote or to collect dividents, nor is it used in calculating earnings per share. It is generally not considered part of the capitalization of the company.
Par Value
An arbitrary value assigned when the stock is issued and printed on the stock ceriticate. Historically, par value has been used as a corporate bookkeeping entry. It has been tradittionally set at a low price, partly because some states' taxes are based on it. This value has no relationship to any other valuation of the stock.
For stcok issued at a price above par value, the difference is carried on the books as paid-in surplus. Sometimes stock is issued with no par value.
Book Value
Unlike par value, the book value of a share reflects the net worth of the corporation, as determined by generally accepted accounting principles, diviededd by the number of shares outstanding.
Market Value
The value assigned to a share in the marketplace.