Term
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Definition
| The amount of stock that a corporation is authorized to sell as indicated in its charter. |
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Definition
| A pro rata (proportional to ownership) distribution of cash to stockholders. |
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Definition
| A document that describes a corporation's name & purpose, types of stock and number of shares authorized, names of individuals involved in the formation, & number of shares each individual has agreed to purchase. |
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Term
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Definition
| A company organized as a separate legal entity, with most of the rights & privileges of a person. |
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Definition
| A feature of preferred stock entitling the stockholder to receive current and unpaid prior-year dividends before common stockholders receive any dividends. |
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Term
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Definition
| The date the board of directors formally authorizes the dividend & announces it to stockholders. |
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Term
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Definition
| A debit balance in retained earnings. |
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Term
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Definition
| A distribution by a corporation to its stockholders on a pro rata (proportional to ownership) basis. |
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Term
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Definition
| Preferred dividends that were supposed to be declared but were not declared during a given period. |
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Term
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Definition
| The amount of capital that must be retained in the business for the protection of corporate creditors. |
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Term
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Definition
| Capital stock that has not been assigned a value in the corporate charter. |
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Term
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Definition
| Capital stock that has been issued & is being issued by stockholders. |
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Term
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Definition
| The amount stockholders paid in to the corporation in exchange for shares of ownership. |
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Term
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Definition
| Capital stock that has been assigned a value per share in the corporate charter. |
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Term
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Definition
| The date cash dividend payments are made to stockholders. |
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Term
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Definition
| A measure of the percentage of earnings a company distributes in the form of cash dividends to common stockholders. |
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Term
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Definition
| Capital stock that has contractual preferences over common stock in certain areas. |
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Term
| Privately Held Corporation |
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Definition
| A corporation that has only a few stockholders & whose stock is not available for sale to the general public. |
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Term
| Publicly Held Corporation |
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Definition
| A corporation that may have thousands of stockholders & whose stock is traded on a national securities market. |
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Term
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Definition
| The date when the company determines ownership of outstanding shares for dividend purposes. |
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Term
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Definition
| Net income that a company retains in the business. |
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Term
| Retained Earnings Restrictions |
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Definition
| Circumstances that make a portion of retained earnings currently available for dividends. |
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Term
| Return on Common Stockholders' Equity (ROE) |
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Definition
| A measure of profitability from the stockholders' point of view; computed by dividing net income minus preferred dividends by average stockholders' equity. |
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Term
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Definition
| The amount per share assigned by the board of directors to no-par stock. |
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Term
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Definition
| A pro rata (proportional to ownership) distribution of the corporation's own stock to stockholders. |
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Term
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Definition
| The issuance of additional shares of stock to stockholders accompanied by a reduction in the par or stated value per share. |
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Term
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Definition
| A corporation's own stock that has been reacquired by the corporation & is being held for future use. |
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