Corporate Equity and Share Issuance

These flashcards cover key vocabulary and concepts related to corporate equity, share issuance, and accounting practices.

Corporate Form

A legal entity that is separate and distinct from its owners with certain legal rights and responsibilities.

Treasury Shares

Shares that were once a part of the outstanding shares of a company but were later repurchased by the company itself.

Dividends

Payments made by a corporation to its shareholders, usually from profits.

Ordinary Shares

Shares that represent ownership in a company and entitle the holder to vote on corporate matters and receive dividends.

Preference Shares

Shares that provide dividends before ordinary shares and have preferential rights in the event of liquidation.

Par Value

The nominal value assigned to a share of stock, which may not reflect its market value.

Share Premium

The amount received by the company over and above the par value of its shares when issued.

Retained Earnings

The accumulated net income of a corporation that has not been distributed to shareholders as dividends.

Liquidating Dividends

Dividends that are paid out of the capital surplus rather than profits.

Equity

The residual interest in the assets of the entity after deducting liabilities, often represented through shares.

Cumulative Preference Shares

Preference shares that accumulate unpaid dividends, which must be paid out before any dividends can be paid on ordinary shares.

Callable Shares

Shares that can be repurchased by the issuing company at a predetermined price after a specified date.

Share Split

A corporate action that increases the number of shares outstanding while reducing the par value per share to maintain the total equity.

Dividend Declaration Date

The date on which the board of directors announces the payment of a dividend.

Market Value of Shares

The current price at which a share can be bought or sold in the market.

Preemptive Rights

Rights that allow existing shareholders to purchase additional shares before new stock is issued to maintain their percentage of ownership.