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Match Each of the Following Terms with the Appropriate Definitions

Question 148

Matching

Match each of the following terms with the appropriate definitions.

Premises:

Responses:

Convertible preferred stock

Preferred stock giving the holder the option of exchanging it for common stock at a specified rate

Authorized stock

The least amount that buyers of stock must contribute to the corporation or be subject to paying at a future date

Organization expenses

The costs of bringing a corporation into existence that include legal fees, promoters' fees and amounts paid to obtain a charter

Common stock

A corporation's distribution of its own stock to its stockholders without the receipt of any payment

No-par value stock

A class of stock that has not been assigned a par value by the corporate charter

Callable preferred stock

The right of common stockholders to maintain their proportionate interest in a corporation by having the first opportunity to buy additional proportionate shares of stock issued

Stock dividend

The number of shares of stock that a corporation's charter allows it to sell

Stock split

The basic stock of a corporation that usually carries voting rights for controlling the corporation

Minimum legal capital

The distribution of additional shares of stock to stockholders according to their present ownership

Preemptive right

Preferred stock that gives the issuing corporation the right to purchase or retire it at specified future prices and dates