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Match Each of the Following Terms with the Appropriate Definitions

Question 39

Matching

Match each of the following terms with the appropriate definitions.

Premises:

Responses:

Proxy

Occurs when a corporation calls in its stock and replaces each share with more than one new share; decreases both the market value per share and the par or stated value per share

Small stock dividend

Occurs when a corporation calls its stock and replaces each share with less than one new share; increases both the market value per share and the par or stated value per share

Basic earnings per share

A stock dividend that is 25% or less of the previously outstanding shares

Transfer agent

The date specified by directors of a corporation for identifying stockholders to receive dividends

Price-earnings ratio

Net income less preferred dividends divided by weighted-average common shares outstanding

Appropriated retained earnings

A ratio of the annual amount of cash dividends distributed to common shareholders relative to the stock's market value

Dividend yield

The ratio of a company's current market value per share to its earnings per share

Reverse stock split

Retained earnings reported separately as a way to inform stockholders of funding needs

Stock split

A bank or trust company that assists with purchases and sales of shares by receiving and issuing certificates as necessary

Date of record

A document that gives a designated agent the right to vote a stockholder's stock