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Related Flashcards
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Cards In This Set
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What is Limited Liability
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It refers to owners of a Corporation. It states that you can only lose what you have invested in the Corporation but nothing more.
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A Company's articles of incorporation are referred to as?
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It's Corporate Charter or Certificate of Incorporation
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What do you call Corporations that are small and only a few owners own stock in the company in which there is no public market for their stock?
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Close or Private Orginizations
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How can you change the amount of authorized shares being issued?
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A Majority vote of the stock holders
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What is Treasury Stock
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Stock that is bought back by the company that has already been issued. Treasury stocks do not vote or get dividends
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How do you calculate Outstanding Stock? What is the definition?
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Outstanding Stock = Issued Stock - Treasury Stock
Its the stock issued minus any shares they have bought back |
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What 4 things are on a stock certificate
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1. Name of Corporation2. The owners name3. Number of shares owned4. Must be signed by a corporate officer
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What does the Transfer Agent do? What does the Registrar Do?
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Transfer Agent - keeps a list of all stock holders. He is in charge of canceling old stock and issuing new stock.Registrar - makes certain that the company does not issue more stock than its authorized to issue
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What do we know about debt financing
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Sale of BondsBond owners have no interest in the company and have to votes
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What do we know about equity financing
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Sale of StocksHave votes, but are at more risk to lose their total investment if the company fails.
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What is Preferred Stock
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It is a stock that is usually issued by larger corporations. Preferred stock owners must receive their dividends before Common Stock owners. It is purchased by people who are interested income vs capital growth
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Who decides if a dividend is paid and how often are they paid out?
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The board of Directors. Dividends are paid out quarterly and taxed in the year it is received
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What is the Declaration Date? Record Date? Payment Date?
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Declaration date - Board declares a dividendRecord Date - Last possible date to own shares and get a dividendPayment Date - Date the dividend is sent to share holders
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What do you know about Stock Dividends?
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It is paid in the form of additional shares. Stock Dividends are not taxable until the shares are sold.
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What is the difference between Statutory and Cumulative voting?
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Joe has 100 shares = 100 votes. Their are 5 open seats for the board. With Statutory Joe can vote up to 100 votes per seat. With Cumulative Joe can cast 500 votes on a seat if he want.
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