Chap. 46

Question 0

Debt securities

Answer 0

Obligations that must be repaid between the holders and the corporation

Question 1

Equity securities

Answer 1

Shares of stock that create ownership of a business

Question 2

Preferred shares

Answer 2

Get paid dividends before common stock

Question 3

Common stock

Answer 3

Normal stock

Question 4

Par value

Answer 4

Amount designated for a share

Question 5

Stock subscription

Answer 5

An offer from a subscriber to purchase shares

Question 6

Watered shares

Answer 6

Shared issued for property or services

Question 7

Debenture

Answer 7

Unsecured obligation

Question 8

Bond

Answer 8

Obligation secured by a lien on specific corporate property

Question 9

Indenture

Answer 9

Trust agreement

Question 10

Certificated securities

Answer 10

Document that’s evidence of debt and equity securities

Question 11

Uncertified

Answer 11

Securities not represented by an instrument

Question 12

Distribution

Answer 12

Transfers of money or other property by the corporation to its shareholders

Question 13

Dividends

Answer 13

Distribution of a corporations earnings to shareholders

Question 14

Cumulative dividend preference

Answer 14

Entitles a shareholder to receive a prescribed dividend for the current year and all prior years

Question 15

Noncumulative

Answer 15

Dividends not paid in prior years

Question 16

Cumulative to the extent earned

Answer 16

Let’s preferred shareholders carry forward and accumulate unpaid dividends

Question 17

Nonparticipating

Answer 17

Shares that are entitled to receive the amount of the stated dividend and no more

Question 18

Participating

Answer 18

Shares entitled to dividends and then additional dividends