Chapter 10 Flashcards
1
Q
Paid In Capital
A
amt stockholders have invested in the company
2
Q
Retained Earnings
A
amt of earnings the company has not paid out in dividends
3
Q
Treasury Stock
A
company’s own stock that it has reaquired (NOTE: this decreases stockholder’s equity)
4
Q
Stockholder Rights
A
Right to:
- vote
- recieve dividends
- shares in the distribution of assets if comp. is dissolved
5
Q
Authorized =
A
issued shares + unissued shares
6
Q
Issued =
A
outstanding shares + treasury stock
7
Q
Par Value
A
the legal capital per share of stock that’s assigned when the comp. is 1st est.
8
Q
No-Par Value Stock
A
stock that has not been assigned a par value
9
Q
Dividends in Arrears
A
unpaid dividends
10
Q
Features of Preferred Stock
A
- Redeemable (can be returned at a fixed price)
- Convertible (can convert to common stock)
- Cumulative
11
Q
Why would a company buy up its own stock?
A
- to boost underpriced stock
- to distribute surplus cash without paying dividends
- to boost earnings per share
- to satisfy emplyee stock ownership plans
12
Q
Retained Earnings =
A
all NI since the comp. began - all dividends since the comp. began
