The following is a list of terms and definitions associated with equity: 1. Treasury stock 2. Cumulative

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The following is a list of terms and definitions associated with equity:
1. Treasury stock
2. Cumulative
3. Stock split
4. Dividend
5.
Stock dividend
6.
Noncumulative
7. Authorized shares
8. Preferred stock
a. The number of shares the corporate charter allows a company to issue.
b. A form of capital stock that receives certain priorities over common stock.
c. A company's own common stock that has been issued to an investor, repurchased by the company, and is being held by the company for future use.
d. A distribution to owners.
e. A type of preferred stock that grants to stockholders preference for current-year dividends only.
f. A type of preferred stock that grants to stockholders preference to current-year dividends as well as all unpaid dividends from prior years.
g. A distribution of a company's own common stock to existing stockholders.
h. This increases a company's shares of stock according to some specified ratio.
Required
Match each term with the appropriate definition.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Financial ACCT2

ISBN: 978-1111530761

2nd edition

Authors: Norman H. Godwin, C. Wayne Alderman

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