Per Chapter 11 (assigned reading for Week 3), summarize in one page Microsoft Word all types of stocks that are issued by corporations and their definitions.

Common Stock
Authorized Stock
Capital Stock
Par and No Par Value Stocks
Treasury Stock
Outstanding Stock
Preferred Stock
GLOSSARY
Authorized stock The amount of stock that a corporation is authorized to sell as indicated in its charter. (p. 514).
By-laws The internal rules and procedures for conducting the affairs of a corporation. (p. 512).
Cash dividend A pro rata distribution of cash to stockholders.
(p. 526).
Charter A document that creates a corporation. (p. 512).
Corporation A business organized as a legal entity separate and distinct from its owners under state corporation law. (p. 508).
Cumulative dividend A feature of preferred stock entitling the stockholder to receive current and unpaid prior-year dividends before common stockholders receive any dividends.
(p. 525).
Declaration date The date the board of directors formally declares the dividend and announces it to stockholders. (p. 526).
Deficit A debit balance in retained earnings. (p. 534).
Dividend A distribution by a corporation to its stockholders on a pro rata (proportional) basis. (p. 525).
Liquidating dividend A dividend declared out of paid-in capital. (p. 526).
No-par-value stock Capital stock that has not been assigned a value in the corporate charter. (p. 515).
Organization costs Costs incurred in the formation of a corporation. (p. 512).
Outstanding stock Capital stock that has been issued and is being held by stockholders. (p. 522).
Paid-in capital Total amount of cash and other assets paid in to the corporation by stockholders in exchange for capital stock. (p. 516).
Par-value stock Capital stock that has been assigned a value per share in the corporate charter. (p. 515).
Payment date The date dividend checks are mailed to stockholders. (p. 527).
Preferred stock Capital stock that has some contractual preferences over common stock. (p. 524).
Prior period adjustment The correction of an error in previously issued financial statements. (p. 535).
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Privately held corporation A corporation that has only a few stockholders and whose stock is not available for sale to the general public. (p. 509).
Publicly held corporation A corporation that may have thousands of stockholders and whose stock is regularly traded on a national securities exchange. (p. 508).
Record date The date when ownership of outstanding shares is determined for dividend purposes. (p. 527).
Retained earnings Net income that a corporation retains for future use. (pp. 516, 533).
Retained earnings restrictions Circumstances that make a portion of retained earnings currently unavailable for dividends. (p. 534).
Retained earnings statement A financial statement that shows the changes in retained earnings during the year.
(p. 536).
Return on common stockholders’ equity ratio A ratio that measures profitability from the stockholders’ point of
Appendix 11A Stockholders’ Equity Statement 543 view. It is computed by dividing net income available to common stockholders by average common stockholders’ equity. (p. 538).
Stated value The amount per share assigned by the board of directors to no-par stock that becomes legal capital per share. (p. 515).
Stock dividend A pro rata distribution of the corporation’s own stock to stockholders. (p. 530).
Stock split The issuance of additional shares of stock to stockholders accompanied by a reduction in the par or stated value per share. (p. 532).
Stockholders’ equity statement A statement that shows the changes in each stockholders’ equity account and in total stockholders’ equity during the year. (p. 537).
Treasury stock A corporation’s own stock that the corporation has issued, fully paid for,