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28 Cards in this Set
- Front
- Back
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contract rate |
coupon rate, nominal rate, stated rate |
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market rate |
yield rate, effective rate |
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carrying value of the bonds |
discount deducted from par value |
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minimum legal capital |
par value that buyers must contribute |
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no par value stock |
not assigned a value so it can be issued at any price without minimum legal capital |
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stated value stock |
no par stock that is assigned a stated value which is the minimum legal capital |
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stockholders' equity |
1) paid in capital 2) retained earnings |
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Paid in capital |
total amount of cash and other assests the corporation receives from its stockholders in exchange for stock |
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retained earnings |
cumulative net income or loss not distributed as dividends to its stockholders |
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stock dividend |
distribution of additional shares of stock without any payment in return; does not reduce assets and equity but transfers equity from retained earnings to contributed capital |
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small stock dividend |
25% or less of outstanding shares; recorded by capitalizing retained earnings for an amount equal to the market values of the shares |
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large stock dividend |
25% or more of outstanding shares; recorded by capitalizing retained earnings for the minimum amount required by law |
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stock split |
distribution of additional shares according to percentage ownership; calls in outstanding shares and issues more than one new share in exchange for each old share |
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stock split |
reduces par or stated value, no changes made only change in description on stock account |
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preferred stock |
special rights that give it priority over common stock |
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cumulative preferred stock |
right to be paid both current and all prior periods unpaid dividends before any dividend is paid to common stockholders |
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dividend in arrears |
unpaid dividend amount that belongs to cumulative preferred stockholders |
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noncumulative preferred stockholders |
no right to prior periods unpaid dividends |
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nonparticipating preferred stock |
limits dividends to a maximum amount each year; after maximum is reached then common stockholders receive any additional dividends |
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participating preferred stock |
allows preferred stockholders to share with common stockholders in any dividends paid in excess |
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convertible preferred stock |
gives holders option to exchange their preferred shares for common shares |
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callable preferred stock |
gives corporation the right to purchase/retire this stock from its holders |
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call price |
aka redemption value; amount paid to call share is set when stock is issued |
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financial leverage/trading on the equity |
use of preferred stock to increase return to common stockholders |
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treasury stock |
corporations reacquired shares; not an asset, no voting rights but can be issued at less than par |
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prior period adjustments |
corrections of errors in prior period financial statements; reported in statement of retained earnings |
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statement of stockholders equity |
lists beginning and ending balances of key equity accounts and describes change made in that period |
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stock options |
rights to purchase common stock at a fixed price over a specified period |
