Test 3: Stockholders Equity Flashcards
Par Value Stock
A face value of each share of capital stock
No Par Value Stock
Does not require a face value, but the company assigns a stated value
Authorized shares
the maximum number of shares of each class of capital stock that may be issued.
Outstanding Shares
Actual stock held by a stockholder
Treasury Shares
The shares of stock repurchased and in possession of the company
Common Stock
The stock issued when only one class of stock is issued
Preemptive Right
The right that a stockholder has. It allows them to buy more issued stock before a non holder can
Preferred stock
A stock class higher than common, it gives right to a dividend and a liquidated assets if the company folds
Cumulative Dividends vs Noncumaltive
Cumalitve means past dividends must be paid, noncumlative means just this years
Convertible stock
preferred stock can be turned into common stock at a certain rate
Participated stock
Preferred stock that also receives dividend issued to common stockholders
Preferred Stock callable
means that a corporation can redeem the
shares after a length of time and at a price specified in the stock contract.
Paid-in capital
is the amount of
capital contributed to the corporation from various capital stock transactions such as the
issuance of preferred stock and common stock
forward stock split
A forward stock split increases the number of shares outstanding and is accounted for
by reducing the par value or stated value of the stock affected.
stock dividends
issuing more stock as a dividend instead of capital
