Match the following terms with the correct definition a Common
Match the following terms with the correct definition.
a. Common stock
b. Paid-in capital
c. Dividends
d. Legal capital
e. Outstanding stock
f. Par value
g. Preferred stock
h. Retained earnings
i. Treasury stock
j. Stockholders’ equity
_______ 1. Paid-in capital plus retained earnings.
_______ 2. Capital from investments by the stockholders.
_______ 3. Capital earned through profitable operation of the business.
_______ 4. The basic form of capital stock.
_______ 5. Stock in the hands of stockholders.
_______ 6. Distributions by a corporation to its stockholders.
_______ 7. Stock that gives its owners certain advantages over common stock- holders, such as the right to receive dividends before the common stockholders.
_______ 8. Arbitrary amount assigned to a share of stock at the time of incorporation.
_______ 9. The portion of stockholders’ equity maintained for the protection of creditors.
_______ 1 0. A corporation’s own stock that it reacquires.

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