Chap 20 Flashcards
Authorized Capital Stock
the number of shares authorized for issue by the corporate charter
Bylaws
the guidelines for conducting a corporation’s business affairs
Callable Preferred Stock
stock that gives the issuing corporation the right to repurchase the preferred shared from the stockholders at a specific price.
Capital Stock Ledger
a subsidiary ledger that contains a record of each stockholder’s purchases, transfers and current balance of shared owned; also called Stockholders’ Ledger
Capital Stock Transfer Journal
a record of stock transfers used for posting to the stockholders’ ledger
Common Stock
the general class of stock issued when no other class of stock is authorized; each share carried the same rights and privileges as every other share. Even if preferred stock is issued, common stock will also be issued.
Convertible Preferred Stock
preferred stock that conveys the right to convert that stock to common stock after a specified date or during a period of time.
Corporate Charter
a document issued by a state government that establishes a corporation
Cumulative Preferred Stock
stock that converts to its owners the right to receive the preference dividend for the current year and any prior years in which the preference dividend was not paid before common stockholders receive any dividends.
Dividends
distributions of the profits of a corporation to its shareholders.
Limited Liability Company (LLC)
provides limited liability to the owners, who can elect to have the profits taxes at the LLC level or on their individual tax returns
Limited Liability Partnership (LLP)
a partnership that provides some limited liability for all partners
Liquidation Value
value of assets to be applied to preferred stock, usually par value or an amount in excess of par value, if the corporation is liquidated
Market Value
the price per share at which stock is bought and sold
Minute Book
a book in which accurate and complete records of all meetings of stockholders and directors are kept.
Noncumulative Preferred Stock
stock that conveys to its owners the stated preference dividend for the current year, but no rights to dividends for years in which none were declared.
Nonparticipating Preferred Stock
stock that conveys to its owners the right to only the preference dividend amount specified on the stock certificate.
No-Par-Value Stock
stock that is not assigned a par value in the corporate charter
Organization Costs
the costs associated with establishing a corporation
Par Value
an amount assigned by the corporate charter to each share of stock for accounting purposes
Participating Preferred Stock
stock that conveys the right not only to the preference dividend amount but also to a share of other dividends paid
Preemptive Right
a shareholder’s right to purchase a proportionate amount of any new stock issued at a later date
Preference Dividend
a basic or stated dividend rate for preferred stock that must be paid before dividends can be paid on common stock
Preferred Stock
a class of stock that has special claims on the corporate profits or, in case of liquidation, on corporate assets
Registrar
a person or institution in charge of the issuance and transfer of a corporation’s stock
Shareholder
a person who owns shares of stock in a corporation; also called a stockholder
Stated Value
the value that can be assigned to no-par-value stock by a board of directors for accounting purposes
Stocker Certificate
the form by which a capital stock is issued; the certificate indicates the name of the corporation, the name of the stockholder to whom the certificate was issued, the class of stock, and the number of shares
Stockholders’ Equity
the corporate equivalent of owner’s equity; also called shareholders’ equity
Stockholders’ Ledger
“capital stock ledger”
Subchapter S Corporation (S Corp)
an entity formed as a corporation that meets the requirements of subchapter S of the Internal Revenue Code to be treated essentially as a partnership, so that the corporation pays no income tax
Subscribers’ Ledger
a subsidiary ledger that contains an account receivable for each stock subscriber
Subscription Book
a list of the stock subscriptions received
Transfer Agent
a person or institution that handles all stock transfers and transfer records for a corporation
