FA Chapter 12 Flashcards
1
Q
Number of Shares sold to investors=
A
the number of shares issued
2
Q
Authorized Shares
A
the maximum number of shares of capital stock that can be sold to the public.
3
Q
Issued Shares
A
authorized shares of stock that have been sold.
4
Q
Outstanding shares
A
issued shares that are owned by stockholders.
5
Q
Treasury shares
A
issued shares that have been reacquired by the corporation.
6
Q
Legal Capital
A
the amount of capital, required by the state, that must remain invested in the business.
7
Q
Par Value does not equal
A
Market Value
8
Q
Initial Public Offering (IPO)
A
The first time a corporation sells stock to the public
9
Q
Transactions between two investors
A
do not affect the corporation’s accounting records.
10
Q
Preferred Stock
A
- Preference over common stock
- usually has no voting rights
- usually has a fixed dividend rate
