Term
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Definition
| any investment product that can be exchanged for a value and involves risk. Also, the investment must be readily transferable between 2 parties, and the owner must be subject to loss of some or all of his investment principlevery |
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Term
| List 5 types of securities |
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Definition
common and preferred stock.
Bonds.
Mutual funds.
Variable annuities.
Variable life insurance |
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Term
| List 5 types of non-securities. |
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Definition
whole life insurance.
Term life insurance.
Retirement plans.
fixed annuities.
prospectus |
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Term
| define the term equity or stock? |
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Definition
equity or stock is:
the original capital paid into or invested in the business by its founders. |
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Term
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Definition
stock is:
the original capital paid into or invested in the business by its founders. |
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Term
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Definition
assets:
assets are everything that a company owns,including cash, securities, investments, inventory, property, and accounts receivable |
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Term
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Definition
| Liabilities are everything that a company owes, including accounts payable and both long and short-term debt as well as any other obligations. |
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Term
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Definition
net worth:
Is equal to the value of all assets after all liabilities have
been paid. This corporation’s net worth is the stockholders’ equity. Remember
that the stockholders own the company. |
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Term
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Definition
| A security that represents the ownership of a corporation. Common stockholders vote to elect the board of directors and to institute major corporate policies. |
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Term
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Definition
the maximum number of shares that a company may sell to the investing public in an effort to raise cash to meet the organization’s goals. The number of authorized shares is arbitrarily determined and is set at the time of incorporation. A corporation may sell all or part of its authorized stock. If the corporation wants to sell more shares than it is authorized to sell, the
shareholders must approve an increase in the number of authorized shares. |
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Term
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Definition
Is the maximum number of shares that a company may sell to the investing public in an effort to raise cash to meet the organization’s goals.
The number of authorized shares is arbitrarily determined and is set at the time of incorporation. A corporation may sell all or part of its authorized stock. If the
corporation wants to sell more shares than it is authorized to sell, the
shareholders must approve an increase in the number of authorized shares. |
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Term
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Definition
Outstanding stock is stock that has been sold or issued to the investing public
and that actually remains in the hands of the investing public. |
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Term
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Definition
Treasury stock is stock that has been sold to the investing public, which has
subsequently been repurchased by the corporation. The corporation may elect to reissue the shares or it may retire the shares that it holds in Treasury stock.
Treasury stock does not receive dividends nor does it vote. |
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Term
| A corporation may elect to repurchase its own shares to: |
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Definition
• Maintain control of the company
• Increase earnings per share
• Fund employee stock purchase plans
• Use shares to pay for a merger or acquisition |
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Term
| what is the formula to determine the amount of treasury stock: |
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Definition
| issued stock – outstanding stock = treasury stock |
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Term
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Definition
| The book value of a Corporation is the theoretical liquidation value of the company. it is calculated by taking all of the company's tangible assets and subtracting all of its liabilities. To determine the book value per share, divide the total book value by the total number of outstanding common shares. |
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