Chapter 13 - Vocab Flashcards
The total number of shares that the State has approved for a corporation to sell.
Authorized shares
A statement that has indicated the anticipated changes in each partner’s capital.
Budgeted statement of owner’s equity
Preferred stock that gives the issuing corporation the right to rep purchase the preferred stock. It is stipulated price.
Callable preferred stock
a cash distribution in the form of a check drawn on the incorporations bank account that is sent to each shareholder as of a certain date.
Cash dividend
the basic ownership unit of a corporation.
Common stock
preferred stock that gives the shareholder the right to convert the shares to other forms of capital as stated in the corporate charter at the option of the preferred stockholder.
Convertible preferred stock,
Preferred stock that accumulates unpaid dividends overtime
Cumulative preferred stock
The date on which the Board of Directors announces its decision to pay a dividend
Date of declaration
The date on which the corporation formally pays dividends to shareholders of record
Date of payment
the date on which the secretary of the corporation examines the stock ownership transfers book to determine who is officially registered as a shareholder of the corporation, and therefore eligible to receive the corporations dividends
Date of record
When a company obtains funds in exchange for a liability to repay the borrowed funds
Debt financing
A program that allows current shareholders to use their cash dividends to buy more shares of the companies stock
Dividend reinvestment program
The amount of cumulative preferred stock dividends not paid in full when stipulated
Dividends in arrears
A means for a company to obtain funds and exchange for an ownership interest in the company
Equity financing
A financing strategy designed to increase the rate of return on the owners investment
Financial leverage
The number of authorized shares a corporation has sold to its shareholders
Issued shares
The portion of shareholders equity required by state law to be retained for the protection of the corporations creditors
Legal capital
Price agreed to by a willing, unrelated buyer and seller
Market value
Stock with a minimum issue, price or stated value established by the corporations Board of Directors, but no par value specified in the charter
No par stated value stock
Stock that does not have a minimum price assigned to each share of stock
No par stock
The number of shares issued and held outside the corporation
Outstanding share
In arbitrary value assigned to shares of capital stock that is approved by the state in which the the business is incorporated
Par value
Preferred stock that allows preferred shareholders the right to receive an amount in excess of the stated dividend rate or amount
Participating preferred stock
A right of common shareholders that allows them to maintain their percentage interest in the corporation when it issues new shares of common stock
Preemptive right
And ownership interest in a corporation with special privileges or preferences as to liquidation and dividends
Preferred stock
The distribution of specific non-cash assets to the shareholders of a corporation
Property dividend
Preferred stock that allows a shareholder to turn in or redeem the preferred stock for cash at the shareholders option
Redeemable preferred stock
Pre-purchased issued shares that the corporation will never re-issue
Retired shares
A ratio that measures the proportion of income available to provide a return for common stockholders
Return on common equity ratio
Io that measure measures the performance of the company in terms of the owner’s investment
Return on owners equity ratio
the corporations recall of its old shares of stocks and issuance of a smaller number of new shares in their place
Reverse stock split
the distribution of additional shares of the corporations stock to existing shareholders
Stock dividend
The corporations recall of its old shares of stock and issuance of a larger number of new shares in their place
Stock split
a measure of the company’s ability to service its debt
Times interest earned ratio
The shares of the corporations issued stock that the corporation has re-purchased and intends to re-issue at a later date
Treasury stock
