Types of common stock
authorized- shares available to sell
Issued- shares sold
Outstanding- shares issued and held by investors
Treasury- shares issued and repurchased by the company
Legal capital- per share of stock that’s assigned when the corporation’s ID is first established
Treasury stock- companies by back their stock to boos underpriced stock, to distribute surplus cash without paying dividends, to boost earnings per share, to satisfy employee stock ownership plans
Retained earnings- represent all net income, less all dividends, since the company began operations.
Dividends dates
Declaration date- date on which the board of directors announces the next dividend to be paid
Record date- the date on which the company looks at its records to determine who the stockholders of the company are
Payment date- the date of the actual distribution of dividends
Stock split- a large stock dividend that includes reduction in the par or stated in the par or stated value per share
Earnings per share- measure net income earned per share of common stock
Income statement- items expressed as a percentage of sales
balance sheet- items expressed as a percentage of total assets
Profitability ratios- measure the earnings or operating effectiveness of a company over a period of time, such as a year
Earnings persistence- current earnings that will continue or persist into future years
One-time income items- certain items are part of net income in the current year but are not expected to persist
Conservative accounting practices- lower income, lower assets, higher liabilities
Aggressive accounting practices- higher income, higher assets, lower liabilities
Ch 9, 10, 12 P2
Types of common stock
authorized- shares available to sell
Issued- shares sold
Outstanding- shares issued and held by investors
Treasury- shares issued and repurchased by the company
Legal capital- per share of stock that’s assigned when the corporation’s ID is first established
Treasury stock- companies by back their stock to boos underpriced stock, to distribute surplus cash without paying dividends, to boost earnings per share, to satisfy employee stock ownership plans
Retained earnings- represent all net income, less all dividends, since the company began operations.
Dividends dates
Declaration date- date on which the board of directors announces the next dividend to be paid
Record date- the date on which the company looks at its records to determine who the stockholders of the company are
Payment date- the date of the actual distribution of dividends
Stock split- a large stock dividend that includes reduction in the par or stated in the par or stated value per share
Earnings per share- measure net income earned per share of common stock
Income statement- items expressed as a percentage of sales
balance sheet- items expressed as a percentage of total assets
Profitability ratios- measure the earnings or operating effectiveness of a company over a period of time, such as a year
Earnings persistence- current earnings that will continue or persist into future years
One-time income items- certain items are part of net income in the current year but are not expected to persist
Conservative accounting practices- lower income, lower assets, higher liabilities
Aggressive accounting practices- higher income, higher assets, lower liabilities