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Match Each of the Following Terms with the Appropriate Definitions

Question 207

Matching

Match each of the following terms with the appropriate definitions:

Premises:

Responses:

No-par value stock

A class of stock that has not been assigned a par value by the corporate charter.

Convertible preferred stock

The basic stock of a corporation that usually carries voting rights for controlling the corporation.

Par value

The number of shares of stock that a corporation's charter allows it to sell.

Stock dividend

A corporation's distribution of its own stock to its stockholders without the receipt of any payment.

Preemptive right

Preferred stock that gives the issuing corporation the right to purchase or retire it at specified future prices and dates.

Organization costs

The costs of bringing a corporation into existence that include legal fees, promoters' fees, and amounts paid to obtain a charter.

Stock split

The distribution of additional shares of stock to stockholders according to their present ownership.

Common stock

An amount assigned per share by the corporation in its charter.

Callable preferred stock

Preferred stock giving the holder the option of exchanging it for common stock at a specified rate.

Authorized stock

The right of common stockholders to maintain their proportionate interest in a corporation by having the first opportunity to buy additional proportionate shares of stock issued.