Chapter 13 Terms Flashcards
Authorized Stock
The amount of stock that a corporation is authorized to sell as indicated in its charter
Charter
A document that is issued by the state to set forth important terms and features regarding the creation of a corporation
Corporation
A business organized as a legal entity separate and distinct from its owners under state corporation law
No-Par Value Stock
Capital stock that has not been assigned a value in the corporate charter
Organization Costs
Costs incurred in the formation of a corporation
Outstanding Stock
Capital stock that has been issued and is being held by stockholders
Paid-In Capital
Total amount of cash and other assets paid in to the corporation by stockholders in exchange for capital stock
Par Value Stock
Capital stock that has been assigned a value per share in the corporate charter
Preferred Stock
Capital stock that has some preferences over common stock
Privately Held Corporation
A corporation that has only a few stockholders and whose stock is not available for sale to the general public
Publicly Held Corporation
A corporation that may have thousands of stockholders and whose stock is regularly traded on a national securities exchange
Retained Earnings
Net income that the corporation retains for future use
Stated Value
The amount per share assigned by the board of directors to no-par value stock
Treasury Stock
A corporation’s own stock that has been issued and subsequently reacquired from shareholders by the corporation but not retired
