Following are denitions or descriptions of terms relating to corporations and corporate stockholders equity. (1) The rst-time

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Following are definitions or descriptions of terms relating to corporations and corporate stockholders’ equity.
(1) The first-time sale of a corporation’s stock to the general public
(2) A dollar value that has been assigned to each share of stock
(3) A ‘‘legal’’ being
(4) The maximum number of shares of stock that a corporation is permitted to sell
(5) The class of stock that normally has voting rights
(6) A document describing the basic nature of the corporate entity
(7) The number of shares of stock that has been sold by a corporation
(8)
The ability of stockholders to maintain their proportionate ownership interest in a company when new issues of stock are made
(9) The number of shares of stock currently held by company’s shareholders
(10) The stock that has been issued and reacquired by a corporation
(11)
Corporate shares that are typically cumulative
Required:
Match each definition or description with the appropriate term from the following list.
(a) Corporation
(b)
Corporate charter
(c) Initial public offering
(d) Authorized stock
(e) Issued stock
(f) Outstanding stock
(g) Treasury stock
(h) Preferred stock
(i) Common stock
(j)
Preemptive right
(k) Par value
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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