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 offering 

11. Redeemable preferred shares  

12. Secondary market Instructions 

For each description, write the number of the term it best matches. Do not use a number more than once. 

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 securities 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 issue 

e. ________ The number of shares a corporation has actually issued 

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