Ch. 10: Stockholders' Equity

These flashcards cover key vocabulary terms related to stockholders' equity.

Contributed Capital

The amount invested by stockholders in a corporation.

Earned Capital

Cumulative profits of a company after paying dividends.

Treasury Stock

The corporation's own stock that has been repurchased.

IPO (Initial Public Offering)

The first sale of stock by a company to the public.

Authorized Stock

The total number of shares a corporation is authorized to issue.

Issued Stock

Shares that have been sold to shareholders.

Outstanding Stock

Shares currently held by shareholders.

Paid-in Capital

The amount investors have paid to purchase stock from a company.

Retained Earnings

The cumulative amount of net income retained in the company instead of being paid out as dividends.

Accumulated Deficit

A negative balance in retained earnings.

Angel Investors

Wealthy individuals who provide capital for startups in exchange for ownership equity.

Dividends Payable

A liability account that represents the obligation to pay dividends that have been declared.

Declaration Date

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

Record Date

The date on which the company determines the stockholders eligible for the dividend.

Payment Date

The date on which dividends are actually distributed to shareholders.

Net Income

Total revenue minus total expenses, reflecting the profit of the company.