Term
| Articles of Incorporation |
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Definition
| An official document filed with and approved by a state that authorizes the incorporators to do business as a corporation. |
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Definition
| The maximum number of shares a corporation can issue without a change in its state charter. |
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Term
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Definition
| Preferred stock that the issuing corporation can redeem or retire at a stated price. |
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Term
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Definition
| Shares of stock that carry voting rights but that rank below preffered stock in terms of dividends and the distribution of assets. |
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Term
| Convertible preferred stock |
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Definition
| Preferred stock that the owner can exhange for common stock. |
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Term
| Cumulative preferred stock |
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Definition
| Preferred stock on which unpaid dividends accumulate over time and that must be satisfied before a dividend can be paid to common stockholders. |
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Term
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Definition
| The date on which a dividend is paid. |
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Term
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Definition
| The date on which a board of directors declares a dividend. |
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Term
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Definition
| A distribution of a corporation's assets (usually cash generated by past earnings) to its stockholders. |
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Definition
| Past dividends on cumulative preferred stock that remain unpaid. |
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Term
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Definition
| Taxation of corporate earnings twice - once as income of the corporation and once as income to stockholders in the form of dividends. |
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Term
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Definition
| A description of stock between the record date and the date of payment, during which the right to the dividend remains with the person who owned the stock on the record date. |
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Term
| initial public offering (IPO) |
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Definition
| A company's first issue of capital stock the the public. (Decision Point) |
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Term
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Definition
| The shares of stock sold or otherwise transferred to stockholders. |
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Term
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Definition
| The number of shares of stock issued times the par value; the minimum amount a corporation can report as contributed capital. |
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Term
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Definition
| A dividend that exceeds retained earnings and that a corporation usually pays only when it is going out of business or reducing its operations. |
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Term
| Noncumulative preferred stock |
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Definition
| Preferred stock that does not oblige the issuer to make up a missed dividend in a subsequent year. |
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Term
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Definition
| Capital stock that does not have a par value. |
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Term
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Definition
| Shares that have been issued and that are still in circulation. |
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Term
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Definition
| An arbitrary amount assigned to each share of stock; constitutes a corporation's legal capital. |
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Term
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Definition
| Stock that has preference over common stock, usually in terms of dividends and the distribution of assets. |
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Term
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Definition
| The date on which ownership of stock, and thus the right to receive a dividend, is determined. |
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Term
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Definition
| The equity of common stockholders after all other claims have been satisfied. |
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Term
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Definition
| A unit of ownership in a corporation. |
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Term
| Start-up and organization costs |
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Definition
| The costs of forming a corporation. |
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Definition
| A value that a board of directors assigns to no-par stock. |
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Definition
| Documents issued to stockholders showing the number of shares that they own. |
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Term
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Definition
| Plans that give employees the right to purchase their companies' stock under specified terms. |
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Term
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Definition
| Capital stock, either common or preferred, that the issuing company has reacquired and has not subsequently resold or retired. |
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Term
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Definition
| An intermediary between the coporation and the investing public who facilitates an issue of stock or other securities for a fee. |
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Term
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Definition
| Current return to stockholders in the form of dividends; Dividends per Share ÷ Market Price per Share. |
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Term
| Price/earnings (P/E) ratio |
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Definition
A measure of confidence in a company's future;
Market Price per Share ÷ Earnings per Share. |
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Term
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Definition
A measure of management's performance;
Net Income ÷ Average Stockholders' Equity. |
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