Equity Securities

Question 1

American Depository Receipts

Answer 1

Negotiable certificate representing stock in a foreign corporation

Question 2

Authorized Stock

Answer 2

Number of shares of stock that a corporation is permitted to issue

Question 3

Book Value

Answer 3

Net worth of each share of common stock

Question 4

CUSIP Number

Answer 4

Assigned to each security to be used when recording buy and sell orders

Question 5

Outstanding Stock

Answer 5

Equity securities in the hands of the public

Question 6

Par Value

Answer 6

Dollar amount assigned to a security by its issuer

Question 7

Preemptive Right

Answer 7

Stockholders may maintain proportionate ownership by purchasing newly issued shares before they are offered to the public

Question 8

Registar

Answer 8

Party responsible to account for all of an issuer’s outstanding stock

Question 9

Transfer Agent

Answer 9

Party responsible for recording security owners’ names and holdings and delivering primary securities

Question 10

Preferred Stock

Answer 10

Preference over common for liquidation and dividends