Shared Flashcard Set

Details

Financial Accounting
Ch. 11
13
Accounting
Not Applicable
04/07/2004

Additional Accounting Flashcards

 


 

Cards

Term
Rights of a common stock owner
Definition
-A voice in managment
-Dividends
-Residual Claim
Term
How are corporations created?
Definition
By application to a state government, which issues a charter.
Term
authorized number of shares
Definition
the maximum number of shares that can be sold
Term
issued shares
Definition
the total number of shares of stock that have been sold
Term
outstanding shares
Definition
the total number of shares of stock that are owned by stockholders on any particular date
Term
Earnings per Share
Definition
(Income)
----------------------------------
Avg # of Common Shares Outstanding

Measures profitability (but may be misleading if comparing 2 companies with very different share values)
Term
common stock
Definition
the basic voting stock
Term
How is the dividend rate for common stock determined?
Definition
by the board of directors based on the company's profitability
Term
par value
Definition
the nomial value per share of capital stock specified by the charter;

serves as the basis for legal capital
Term
legal capital
Definition
the permanent amount of capital defined by state law that must remain invested in the business;

serves as a cushion for creditors
Term
the 2 components of contributed capital
Definition
-common stock
-paid-in capital
Term
IPO
Definition
Initial Public Offering
Term
seasoned new issue
Definition
the sale of stock to the public after the IPO
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