Equity Financing Module 7

These flashcards cover key concepts from the Equity Financing module, providing definitions of important terms such as preferred stock, par value, and retained earnings.

Preferred Stock

A class of stock that has a fixed dividend and takes precedence over common stock in asset distribution.

Par Value

The nominal or face value of a stock, used to calculate the total value of preferred stock issued.

Paid-in Capital

The amount received from shareholders in excess of the par value of the stock.

Treasury Stock

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

Retained Earnings

The cumulative amount of net income that a company retains, rather than distributing as dividends.

Common Stock Dividend

The portion of a company's earnings distributed to shareholders of common stock.

Preferred Stock Dividend

The amount paid to preferred shareholders, typically calculated as a percentage of par value.

Equity Financing

The method of raising capital by selling shares of stock to individuals or institutional investors.