term1 Definition1term2 Definition2term3 Definition3
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Equity
Are the financial rosources provided by owners of the business, including initial, additional investments and earnings retained in the business.
Borrowed capital
Are those loans extended by financial intermediaries or investors, in the issuance of credit instruments.
Authorized capital stock
Issued stock
Reacquired stocks
Outstanding stock
Forms of Capital Stock
Is the maximum number of shares that the business owners are allowed to issue.
Is the amount of authorized stock subscribed to and paid for in cash, property or services.
These stocks can be reacquired in two ways: (1) is gift from stockholders; (2) is buying back some of the company's issued stock.
Is the portion of issued stock nor reacquired.
Common shares
Are units of ownership registered in the names of proprietors.
*has the right to vote or elect bod
*share in profits and dividends
*pre-emptive common law right
*right to assets in liquidation
Preffered shares issuance
Is indicated in the articles of incorporation.
*no right to vote or elect
*right to share in profits and dividends
Current or short term
Debt due to repayment within a period of twelve months
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