Term
| Rights of a common stock owner |
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Definition
-A voice in managment
-Dividends
-Residual Claim
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Term
| How are corporations created? |
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Definition
| By application to a state government, which issues a charter. |
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Term
| authorized number of shares |
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Definition
| the maximum number of shares that can be sold |
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Term
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Definition
| the total number of shares of stock that have been sold |
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Term
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Definition
| the total number of shares of stock that are owned by stockholders on any particular date |
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Term
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Definition
(Income)
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Avg # of Common Shares Outstanding
Measures profitability (but may be misleading if comparing 2 companies with very different share values) |
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Term
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Definition
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Term
| How is the dividend rate for common stock determined? |
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Definition
| by the board of directors based on the company's profitability |
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Term
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Definition
the nomial value per share of capital stock specified by the charter;
serves as the basis for legal capital |
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Term
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Definition
the permanent amount of capital defined by state law that must remain invested in the business;
serves as a cushion for creditors |
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Term
| the 2 components of contributed capital |
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Definition
-common stock
-paid-in capital |
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Term
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Definition
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Term
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Definition
| the sale of stock to the public after the IPO |
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