 | Term | Definition |
| |
charter |
the legal right granted by a state that permits a corporation to exist |
| |
commitment |
a promise to engage in some future activity that will have an economic effect |
| |
common stock (capital stock) |
the stock that conveys primary ownership rights in a corporation |
| |
contingency |
an existing condition that may result in an economic effect if a future event occurs |
| |
contributed capital |
an owners' equity account that identifies amounts contributed to a company by its owners; the direct investment made by stockholders in a corporation |
| |
date of declaration |
date on which a corporation's board of directors announces that a dividend will be paid |
| |
date of payment |
date on which the dividends are mailed to those receiving dividends |
| |
date of record |
date used to determine those owners who will receive the dividend |
| |
paid-in capital in excess of par value |
the amount in excess of the stock's par value received by a corporation from the sale of its stock |
| |
par value |
the value assigned to each share of stock by a corporation in its corporate charter |
| |
preemptive right |
the right of stockholders to maintain the same percentage of ownership when new shares are issued. |
| |
preferred stock |
stock with a higher claim on dividends and assets than common stock |
| |
stock dividends |
shares of stock distributed by a company to its current stockholders without charge to the stockholders |
| |
stock rights |
authorization for existing stockholders to purchase new shares |
| |
stock split |
the issuance by a corporation of a multiple of the number of shares of stock outstanding before the split |
| |
treasury stock |
stock repurchased by a company from its stockholders |
| Add or remove terms from this set |
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