Vocabulary

Question 1

Authorized stock

Answer 1

The number of shares a corporation may issue.

Question 2

Issued stock

Answer 2

The number of shares the corporation has sold.

Question 3

Outstanding stock

Answer 3

The number of shares the corporation has issued but not reacquired.

Question 4

Record Shareholder

Answer 4

The person recorded as holding the stock.

Question 5

Record Date

Answer 5

The date at which one must hold record title to stock in order to vote. If you own at this date but sell before a meeting, possession at the record date still entitles you to a vote.

Question 6

Proxy

Answer 6

A shareholder authorization allowing someone else to vote the shareholder’s shares.

Question 7

Preferred stock

Answer 7

Stock that is entitled to dividends before other stock. This stock is not paid more. Indeed, sometimes the value is set below the common stock value for dividends.

Question 8

Cumulative dividend

Answer 8

The value of the dividend increases year to year.

Question 9

What is a de jure corporation?

Answer 9

A corporation created through an incorporator’s proper delivery of its articles of incorporation to the Secretary of State.

Question 10

Bylaws

Answer 10

Bylaws comprise an operating manual for the company and include things like setting records and methods of giving notice, etc.