Chapter 11 Stockholder's Equity Flashcards
Stockholder’s Equity
liability to shareholders
Authorized
how many shares the Board of Directors approves for the company to sell
Issued
how many shares the company makes available to shareholders
Outstanding
how many shares are still available in the market
Par Value
the face value that’s given in the problem, the minimum legal capital
No-Par Value
a stock not assigned an amount or face value
No-Par Stated Value
a stock that has a stated value but it is not at par
Treasury Stock
a stock that has been bought back by the company
Capital in Excess account
a contra-stockholder’s equity account that is responsible for the difference between bonds payable and cash
Preferred Stock
1) Receives dividends 1st
2) Paid 1st in liquidation
Preemptive rights
right for shareholders to vote or not vote, to dividends declared
Cumulative vs. Non-Cumulative
Cumulative: amount owed each year (dividends in arrears) will be paid in the following year
Non-cumulative: amount owed each year with no carrying value
Participatory vs. Non-Participatory
Participatory: access to excess dividends
Non-participatory: no access
Stated Dividend Rate
rate that can be shown in $$ amount or %
Dividends
