Match the following terms with the appropriate description. A. Authorized shares B. Common stock C. Preemptive right

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Match the following terms with the appropriate description.
A. Authorized shares
B. Common stock
C. Preemptive right
D. Preferred stock
E. Stock split
F. Stock dividend
G. Dividends in arrears
H. Outstanding shares
I. Treasury stock
J. Par value
K.
Reverse stock split
L. Date of record
________ 1. When a corporation buys its own shares in the secondary market.
________ 2. Minimum price a share of stock can be sold for in the initial issue market.
________ 3. Basic unit of ownership in a corporation.
________ 4. Stock that gets paid dividends first but typically does not have the right to vote.
________ 5. Last chance to buy stock and still get the dividend.
________ 6. Maximum number of shares a corporation can sell.
________ 7. Number of shares issued that are not held by the corporation.
________ 8. When a corporation fails to pay cumulative preferred dividends.
________ 9. Changes the par value of the stock to a higher value.
________ 10. Assures common shareholders they can maintain their percentage of ownership when new shares are issued.
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...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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...
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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