(See related pages)
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| Authorized shares | The total number of shares that a corporation's charter authorizes it to sell. Federally incorporated companies are authorized to issue an unlimited number. (See page(s) 759) |
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| Book value per common share | The recorded amount of shareholders' equity applicable to common shares divided by the number of common shares outstanding. (See page(s) 782) |
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| Book value per preferred share | The amount of shareholders' equity applicable to preferred shares (equals the preferred share's call price or issue price if the preferred share is not callable, plus any cumulative dividends in arrears) divided by the number of preferred shares outstanding. (See page(s) 782) |
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| Call price | The amount that must be paid to call and retire a preferred share. (See page(s) 775) |
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| Callable preferred shares | Preferred shares that the issuing corporation, at its option, may retire by paying a specified amount (the call price) to the preferred shareholders plus any dividends in arrears. (See page(s) 775) |
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| Capital stock | See share capital. (See page(s) 756) |
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| Closely held shares | See privately held shares. (See page(s) 756) |
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| Common shares | Shares of a corporation when there is only one class of shares. (See page(s) 760) |
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| Contributed capital | The total amount of cash and other assets received by the corporation from its shareholders in exchange for common and/or preferred shares. (See page(s) 767) |
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| Convertible preferred shares | Preferred shares that give holders the option of exchanging their preferred shares for common shares at a specified rate. (See page(s) 775) |
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| Cumulative preferred shares | Preferred shares on which undeclared dividends accumulate until they are paid; common shareholders cannot receive a dividend until all cumulative dividends have been paid. (See page(s) 773) |
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| Date of declaration | The date the directors vote to pay a dividend. (See page(s) 771) |
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| Date of payment | The date when shareholders receive the dividend payment. (See page(s) 771) |
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| Date of record | The future date specified by the directors for identifying those shareholders listed in the corporation's records to receive dividends. (See page(s) 771) |
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| Deficit | Arises when a corporation has a debit (abnormal) balance for retained earnings. (See page(s) 772) |
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| Dividend in arrears | An unpaid dividend on cumulative preferred shares; it must be paid before any current dividends on the preferred shares and before any dividends on the common shares are paid. (See page(s) 773) |
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| Dividend preference | The rate per share at which dividends are paid when declared. (See page(s) 773) |
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| Equity financing | Obtaining capital, or money, by issuing shares. (See page(s) 762) |
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| Financial leverage | Achieving an increased return on common shares by paying dividends on preferred shares or interest on debt at a rate that is less than the rate of return earned with the assets that were invested in the corporation by the preferred shareholders or creditors. (See page(s) 769) |
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| Market value per share | The price at which stock is bought or sold. (See page(s) 763) |
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| Non-cumulative preferred shares | Preferred shares on which the right to receive dividends is lost for any year that the dividends are not declared. (See page(s) 773) |
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| No par value | A class of shares that has not been assigned a par value by the corporate charter. (See page(s) 764) |
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| Non-participating preferred shares | Preferred shares on which dividends are limited to a maximum amount each year. (See page(s) 775) |
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| Organization costs | The costs of bringing a corporation into existence, including legal fees, promoters' fees, and amounts paid to the incorporating legal jurisdiction. (See page(s) 759) |
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| Outstanding shares | The number of shares held by shareholders. (See page(s) 765) |
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| Par value | An arbitrary value a corporation places on each of the corporation's shares. (See page(s) 764) |
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| Participating preferred shares | Preferred shares with a feature that allows preferred shareholders to share with common shareholders in any dividends paid in excess of the percent stated on the preferred shares. (See page(s) 775) |
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| Preemptive right | The right to purchase additional shares of common shares issued by the corporation in the future. (See page(s) 768) |
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| Preferred shares | Shares that give their owners a priority status over common shareholders in one or more ways, such as the payment of dividends or the distribution of assets on liquidation. (See page(s) 766) |
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| Privately held shares | When a corporation offers its shares to only a few shareholders; shares are not for public sale; also called closely held shares. (See page(s) 756) |
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| Progressive tax | Higher levels of income are taxed at higher rates and lower levels of income are taxed at lower rates. (See page(s) 758) |
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| Proxy | A legal document that gives an agent of a shareholder the power to exercise the voting rights of that shareholder's shares. (See page(s) 760) |
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| Publicly held shares | When a corporation offers its shares for public sale, which can result in thousands of shareholders. (See page(s) 756) |
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| Public sale | Refers to trading in an organized stock market. (See page(s) 756) |
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| Redeemable preferred shares | See callable preferred shares. (See page(s) 775) |
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| Retained earnings | The cumulative net income less losses and dividends retained by a corporation. (See page(s) 761) |
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| Sell shares directly | When a corporation advertises its shares' issuance directly to potential buyers. This is most common with privately held corporations. (See page(s) 763) |
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| Sell shares indirectly | When a corporation pays a brokerage house (investment banker) to issue its shares. (See page(s) 763) |
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| Share | One unit of ownership in a corporation. (See page(s) 756) |
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| Share capital | Refers to all types (or classes) of a corporation's shares; also called capital stock. (See page(s) 756) |
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| Shareholder(s) | The owners of a corporation. (See page(s) 756) |
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| Shareholders' equity | The equity of a corporation; also called corporate capital. (See page(s) 761) |
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| Statement of retained earnings | A financial statement unique to the corporate form of organization that reconciles retained earnings for the period by taking retained earnings at the beginning of the period, plus net income for the period (or less net loss), less dividends declared for the period, to arrive at retained earnings at the end of the period. (See page(s) 761) |
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| Underwrite | When a brokerage house buys the shares from the corporation and takes all gains or losses from its resale to shareholders. (See page(s) 763) |