Here are some of the terms discussed in the chapter:
1. Retained earnings
2. Issued shares
3. Legal capital
4. Liquidation preference
5. Authorized shares
6. Public corporation
7. Convertible
8. Retractable preferred shares
9. Cumulative
10. Initial public off erring
11. Redeemable preferred shares
12. Secondary market
Instructions
For each description, write the number of the term it best matches.
(a) Preferred shares that give the shareholder the right to redeem shares at their option
(b) The type of corporation whose shares are traded in an organized security market, such as the
Toronto Stock Exchange
(c) Preferred shares that give the issuing corporation the right to repurchase the shares at a specified price and date
(d) The maximum number of shares a corporation is allowed to sell
(e) The number of shares a corporation has actually sold
(f) The first time a corporation's shares are offered to the public
(g) Where investors buy and sell shares from each other, rather than from the company
(h) The element of shareholders' equity that is increased by profit and decreased by losses
(i) A preference to get money back before common shareholders if the company is bankrupt
(j) The share capital that must be retained in the business for the protection of corporate creditors
(k) A feature that allows preferred shareholders to exchange their shares for common shares
(l) A preference to collect unpaid dividends on preferred shares before common shareholders can receive a dividend