Flashcards in Chapter 15-Stockholder's Equity Deck (36)
Additional paid-in capital
The excess over par value paid in by stockholders in return for the shares issued to them.
Callable preferred stock
Preferred stock that grants the issuer the right to purchase the stock from stockholders at specified future dates and prices.
When a corporation distributes a dividend in cash to the stockholders.
The residual corporate interest that bears the ultimate risks of loss and receives the benefits of success.
Capital stock and additional paid-in capital (also called paid-in capital).
Convertible preferred stock
Preferred stock that provides for the exchange of preferred stock into common stock at a specified ratio.
The Treasury Stock account is debited for the cost of the shares acquired and is credited upon reissuance for this same cost.
A feature of preferred stock entitling the stockholder to receive current and unpaid prior-year dividends before common stockholders receive dividends.
Date of declaration
The date the board of directors meets and approves the declaration of a dividend.
Date of payment
The date the board of directors has approved to pay a dividend.
Date of record
The date on which owners of the stock are entitled to a declared dividend.
Discount on stock
The amount under par value paid in by stockholders in return for the shares issued to them.
When a corporation distributes assets (or issues additional stock) to the stockholders.
Capital that develops if the business operates profitably; it consists of all undistributed income that remains invested in the enterprise.
The contributed capital and earned capital of a corporation.
Large stock dividend
A stock dividend of more than 20-25% of the number of shares previously outstanding.
A dividend not based on retained earnings; implying that stockholders are receiving a return of their investment, rather than profits.
Shares issued with no per-share amount printed on the stock certificate.
Capital stock and additional paid-in capital (also called
Par value stock
Capital stock that has been assigned a value per share in the corporate charter; it establishes the maximum responsibility of a stockholder in the event of insolvency or other involuntary dissolution.
A feature of preferred stock enabling the stockholder to share ratably with common stockholders in any dividends beyond the rate specified on the preferred stock.
A stockholder’s right to share proportionately in any new issues of stock of the same class.
Capital stock that has contractual preferences over common stock in certain areas.
When a corporation distributes a dividend of an asset other than cash to the stockholders.
Redeemable preferred stock
Preferred stock that has a mandatory redemption period or a redemption feature that the issuer cannot control.
Earnings retained for use in the business.
Small (ordinary) stock dividend
Stock dividends of less than 20-25%.
The amount per share assigned by the board of directors to nopar stock that becomes legal capital per share.
Statement of stockholders' equity
The disclosure of changes in the separate accounts comprising stockholders’ equity.