Total amount of stock that a corporation's charter authorizes it to issue.
Net income less any preferred dividends and then divided by weighted-average common shares outstanding.
Basic earnings per share
Preferred stock that the issuing corporation, at its option, may retire by paying the call price plus any dividends in arrears.
Callable preferred stock
Corporation's basic ownership share; also generically called capital stock.
Preferred stock with an option to exchange it for common stock at a specified rate.
Convertible preferred stock
Date the directors vote to pay a dividend.
Date of Declaration
Date the corporation makes the dividend payment.
Date of Payment
Date directors specify for identifying stockholders to receive dividends.
Date of Record
Unpaid dividend on cumulative preferred stock; must be paid before any regular dividends on preferred stock and before any dividends on common stock
Dividend in arrears
Stock dividend that is more than 25% of the previously outstanding shares.
Large stock Dividend
Price at which stock is bought or sold.
Market Value per Share
Amount of assets defined by law that stockholders must (potentially) invest in a corporation; usually defined as par value of the stock; intended to protect creditors.
Minimum legal capital
Stock class that has not been assigned a par (or stated) value by the corporate charter.
No par value stock
Costs such as legal fees and promoter fees to bring an entity into existence.
Ratio of a company's current market value per share to its earnings per share; also called price-to-earnings.
Price-Earnings (PE) Ratio
Correction of an error in a prior year that is reported in the statement of retained earnings (or statement of stockholders equity) net of any income tax effects.
Prior Period Adjustments
Stock dividend that is 25% or less of a corporation's previously outstanding shares.
Small Stock Dividend
Occurs when a corporation calls in its stock and replaces each share with more than one new share; decreases both the market value per share and any par or stated value per share.
Corporation's own stock that it reacquired and still holds.
Investments in debt and equity securities that are not classified as trading securities or held-to-maturity securities.
Net change in equity for a period, excluding owner investments and distributions.
Financial statements that show all (combined) activities under the parent's control, including those of any subsidiaries.
Consolidated Financial statements
Accounting method used for long-term investments when the investor has significant influence over the inveestee
Long-term investment when the investor is able to exert controlling influence over the investee; investors owning 50% or more of voting stock are presumed to exert controlling influence.
Equity securities with controlling influence
Long-term investment when the investor is able to exert significant influence over the investee; investors owning 20 percent or more (but less than 50 percent) of voting stock are presumed to exert significant influence.
Equity Securities with Significant Influence
Debt securities that a company has the intent and ability to hold until they mature.
Held-to-Maturity (HTM) securities
Long-term assets not used in operating activities such as notes receivable and investments in stocks and bonds.
Equals net income less comprehensive income; includes unrealized gains and losses on available-for-sale securities, foreign currency adjustments, and pension adjustments.
Other Comprehensive Income
Company that owns a controlling interest in a corporation (requires more than 50% of voting stock).
Ratio reflecting operating efficiency; defined as net income divided by average total assets for the period; also called return on assets or return on investment.
return on total assets
Debt and equity securities that management expects to convert to cash within the next 3 to 12 months (or the operating cycle if longer); also called temporary investments or marketable securities.
Entity controlled by another entity (parent) in which the parent owns more than 50% of the subsidiary's voting stock.
Investments in debt and equity securities that the company intends to actively trade for profit.
Gain (loss) not yet realized by an actual transaction or event such as a sale.