- C1 Corporation
- A business entity legally separate from its owners, with its own life and liability distinct from theirs.
- C1 Stockholders (shareholders)
- Owners of a corporation, each holding shares in proportion to their investment.
- C1 Stock certificate
- A document evidencing a stockholder’s ownership of shares.
- C1 Proxy
- A document giving another party the authority to vote a stockholder’s shares.
- C1 Preemptive right
- A stockholder’s right to maintain their percentage ownership when new shares are issued.
- C1 Authorized stock
- The total number of shares a corporation’s charter allows it to issue.
- C1 Issued stock
- Shares a corporation has sold or otherwise distributed, whether or not still outstanding.
- C1 Outstanding stock
- Issued shares currently held by stockholders — issued shares minus treasury shares.
- P1 Par value
- An amount assigned per share, credited to the stock account; the floor of a stockholder’s legal liability in most states.
- P1 No-par value stock
- Stock with no par value assigned; the entire issue price is credited to the stock account.
- P1 Stated value stock
- No-par stock assigned a stated value by the board, treated like par for recording purposes.
- C1 Minimum legal capital
- The least amount stockholders must invest, set by state law, to protect creditors.
- P1 Paid-in capital
- The total amount stockholders have invested in a corporation.
- P1 Paid-in capital in excess of par value
- The amount received for stock above its par value.
- C1 Common stock
- The basic ownership class of stock, carrying voting rights and a residual claim on assets.
- A1 Preferred stock
- Stock with a priority claim over common stock on dividends and assets, usually without voting rights.
- A1 Cumulative preferred stock
- Preferred stock whose unpaid dividends accumulate as arrears until paid.
- A1 Noncumulative preferred stock
- Preferred stock whose unpaid dividends are forfeited if not declared in that period.
- A1 Participating preferred stock
- [book?] — check this edition’s exact terminology. Preferred stock that can share in dividends beyond its stated rate.
- A1 Dividend in arrears
- A cumulative preferred dividend not yet declared; disclosed, not recorded, until the board declares it.
- A1 Convertible preferred stock
- [book?] — check this edition’s exact terminology. Preferred stock exchangeable for a set number of common shares.
- A1 Callable preferred stock
- Preferred stock the issuer can retire at a stated call price.
- A1 Call price
- The price a corporation must pay to retire callable preferred stock.
- P2 Date of declaration
- The date the board formally approves a dividend, creating a liability.
- P2 Date of record
- The date that fixes which stockholders will receive the dividend; no entry is made.
- P2 Date of payment
- The date the dividend is actually paid, removing the liability and the cash.
- P3 Stock dividend
- A distribution of additional shares to existing stockholders instead of cash.
- P3 Small stock dividend
- [book?] — check this edition’s exact cutoff. A stock dividend below the threshold recorded at market value.
- P3 Large stock dividend
- [book?] — check this edition’s exact cutoff. A stock dividend at or above the threshold recorded at par value.
- P3 Stock split
- An increase in the number of outstanding shares with a proportional decrease in par value; no journal entry is made.
- P1 Treasury stock
- A corporation’s own stock it has issued and reacquired but not retired; a contra equity account.
- P1 Retained earnings
- Cumulative net income not distributed to stockholders as dividends.
- P1 Retained earnings deficit
- A negative retained earnings balance, arising when cumulative losses and dividends exceed cumulative income.
- P4 Restricted retained earnings
- [book?] — check this edition’s exact terminology. Retained earnings unavailable for dividends due to a contract or law.
- P4 Appropriated retained earnings
- [book?] — check this edition’s exact terminology. Retained earnings formally set aside by the board for a specific purpose.
- P4 Prior period adjustments
- Corrections of material errors from a prior period, reported as adjustments to beginning retained earnings.
- P4 Statement of stockholders' equity
- A statement reconciling the beginning and ending balance of every equity account for the period.
- A2 Earnings per share
- Net income available to common stockholders divided by weighted-average common shares outstanding.
- A2 Price-earnings ratio
- Market price per share divided by earnings per share.
- A2 Dividend yield
- Annual cash dividends per share divided by market price per share.
- A2 Book value per share
- Equity attributable to a class of stock divided by its shares outstanding.