Accounting 2a - Stocks & Bonds - Stocks Flashcards
Equity
The money supplied by a company?s owners plus any retained earnings (net income retained by the company).
Paid-in-capital
The money contributed to a company by investors through the purchase of stock.
Dividend
A sum of money paid by a company to its shareholders.
Stock
A security (financial instrument) that signifies partial ownership of a company. Also known as a share.
Common stock
Owners of common stock have the right to vote for a corporation?s board of directors. Dividends are not guaranteed. (Stock related)
Preferred stock
Owners of preferred stock lack voting rights but are usually paid regular dividends. These must be paid before dividends are distributed to common shareholders. (Stock related)
Convertibles
Preferred shares that can be converted into common shares. (Stock related)
Treasury stocks
Shares that a company has bought back from its shareholders. (Stock related)
Declaration date
The day a company approves a dividend disbursement but not the actual distribution date.
Dividends payable
Dividends that a company?s board of directors has declared but not yet paid to its shareholders.
Appreciate
When a stock increases in value.
A bull market occurs when
the stock market rises consistently. (Appreciation related)
Depreciate
When a stock decreases in value.
A bear market occurs when
the stock market falls consistently. (Depreciation related)
Public stocks can be purchased at
an exchange or on the stock market.
