Term
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Definition
| A business owned and run by one person |
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Definition
| Identical to a sole proprietorship except it has more than one order; all partners are liable for the firm's debt; the partnership ends on the death or withdrawal of any single partner |
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Definition
| A partnership with two kinds of owners--general partners and limited partners |
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Definition
| Liability is limited to their investment; private property cannot be seized to pay outstanding debts |
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Term
| Limited liability company (LLC) |
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Definition
| a limited partnership without a general partner; all owners have limited liability and can run the business |
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Term
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Definition
| A legally defined, artificial being, separate from its owners; has many of the legal powers that people have |
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Definition
| Shares that the ownership stake of a corporation is divided into |
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Term
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Definition
| The collection of all the outstanding shares of a corporation |
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Term
| Shareholder/Stockholder/Equity holder |
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Definition
| An owner of a share of stock in the corporation |
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Term
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Definition
| Payments made at the discretion of the corporation to its equity holders |
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Term
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Definition
| Corporations that elect subchapter S tax treatment (firm's profits and losses are not subject to corporate taxes, but are allocated directly to shareholders based on their ownership share) |
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Term
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Definition
| A group of people who have the ultimate decision-making authority in the corporation |
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Term
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Definition
| Charged with running the corporation by instituting the rules and policies set by the board of directors |
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Term
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Definition
| Reports directly to the CEO; the most senior financial manager |
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Term
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Definition
| When managers put their own self-interest ahead of the interests of shareholders |
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Term
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Definition
| An individual or organization can purchase a large fraction of the stock and acquire enough votes to replace the board of directors and the CEO |
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Term
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Definition
| Shutting down the business and selling off its assets |
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Term
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Definition
| Have a limited set of shareholders and their shares are not regularly traded |
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Term
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Definition
| Shares are traded on organized stock markets |
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Term
| Stock markets/stock exchanges |
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Definition
| Provide liquidity and determine a market price for the company's shares |
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Term
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Definition
| Possible to sell easily and quickly for a price very close to the price at which you could contemporaneously buy it |
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Term
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Definition
| Where a corporations itself issues new shares of stock and sells them to investors |
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Term
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Definition
| Where shares are traded between investors without the involvement of the corporation |
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Term
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Definition
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Term
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Definition
| What market makers are called on the NYSE |
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Term
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Definition
| The price buyers stand willing to buy a stock at |
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Term
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Definition
| The price sellers stand willing to sell a stock for |
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Term
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Definition
| The difference between ask prices and bid prices (Ask prices exceed bid prices) |
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Term
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Definition
| A cost investors have to pay in order to trade |
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