ACCT 2001 Ch. 11 Vocab

Summer 2025

authorized shares

the maximum number of shares of capital stock of a corporation that can be issued, as specified in the charter

common stock

the basic voting stock issued by a corporation to stockholders

cumulative dividend preference

the preferred stock feature that requires current dividends not paid in full to accumulate for every year in which they are not paid

current dividend preference

the feature of preferred stock that grants priority on preferred dividends over common dividends

declaration date

the date on which the board of directors officially approves a dividend

dividends in arrears

dividends on cumulative preferred stock that have not been declared in prior years

issued shares

shares of stock that have been distributed by the corporation

no-par value stock

capital stock that has no par value specified in the corporate charter

outstanding shares

shares that are currently held by stockholders

par value

an insignificant value per share of capital stock specified in the charter

payment date

the date on which a cash dividend is paid to the stockholders of record

preferred stock

stock that has specified rights over common stock

record date

the date on which the corporation prepares the list of current stockholders as shown on its records

stock dividend

a dividend that distributes additional shares of a corporation’s own stock

stock split

an increase in the total number of authorized shares by a specified ratio

treasury stock

issued shares that have been reacquired by the company