Paid in capital-
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Terms in this set (19)
Outstanding stockis the number of issued shares held by investorsPar value:The legal capital assigned per share of stockAuthorized =issued + unissuedIssued =outstanding + treasuryPreferred stockStock with preference over common stock in the payment of dividends and the distribution of assets Preferred stock has no voting rights 1. Prefered stockholders recvieve dividends first 2. If a company goes to bankruptcy, preferred stockholders receive the distribution of assets first. 3. Flexible:Convertibleshares can be converted into common stockRedeemableshares can be returned to the corporation at a fixed priceCumulativeshares receive priority for future dividends, if dividends are not declared in a given year.Why CO buy their stockBoost underpriced stock, distribute surplus cash without paying dividends, to boost earnings per share, to satisfy employee stock ownerships