Stock with a priority status over common stockholders
in one or more ways, such as paying dividends or distributing
Small stock dividend
Stock dividend that is 25% or less of a corporation's
previously outstanding shares.
Stated value stock
No-par stock assigned a stated value per share; this
amount is recorded in the stock account when the stock is issued
Corporation's distribution of its own stock to its stockholders
without the receipt of any payment
Occurs when a corporation calls in its stock and replaces
each share with more than one new share; decreases both the market
value per share and any par or stated value per share
General term referring to a corporation's stock used in
obtaining capital (owner financing).
Business that is a separate legal entity under state or
federal laws with owners called shareholders or stockholders.
Cumulative preferred stock
Preferred stock on which undeclared dividends
accumulate until paid; common stockholders cannot receive dividends
until cumulative dividends are paid.
Dividend in arrears
Unpaid dividend on cumulative preferred stock;
must be paid before any regular dividends on preferred stock and before
any dividends on common stock.
Organization expenses (costs)
Costs such as legal fees and promoter
fees to bring an entity into existence.
Total amount of cash and other assets received from
stockholders in exchange for stock
Paid-in capital in excess of par value
Amount received from issuance
of stock that is in excess of the stock's par values