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Authorized stock is the number of shares that have been sold to investors

Authorized stock is the number of shares that have been sold to investors.

 

 

12. Outstanding stock is the number of shares held by investors.

 

 

13. Par value is the legal capital per share of stock that’s assigned when the corporation is first established.

 

 

15. A company credits Additional Paid-in Capital for the portion of the cash proceeds above par value received for the issuance of stock.

 

 

16. In the event a corporation is dissolved, common stockholders receive preference over preferred stockholders in the distribution of assets.

 

 

17. Convertible preferred stock allows the stockholder to exchange shares of preferred stock for common stock at a specified conversion ratio.

 

 

18. Cumulative preferred stock means that dividends accumulate interest during the year.

 

 

19. We usually record preferred stock as equity and report it in the stockholders' equity section of the balance sheet just above common stock.

 

 

20. Treasury stock is the repurchase of a company’s own issued stock.

Jan 25 2020 View more View Less

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