Flashcards
Chapter 21
Flashcards do conjunto (19)
- 1StocksOwnership shares in the company sold to buyers, who receive stock certificates, 550.
- 2StockholderOne who owns stock in a company, 426, 550.
- 3Stock certificateEvidence of ownership in a corporation, 550.
- 4Common stockUnits of ownership called shares, 428, 550, 551.
- 5Preferred stockType of stock that has a preference regarding a corporation’s profits and assets, 550, 551.
- 6DividendsDistribution of company’s profit in cash or stock to owners of stock, 550.
- 7Cumulative preferred stockHolders of preferred stock must receive current year’s dividends and any dividends in arrears before any dividends are paid out to the holders of common stock, 550, 551.
- 8Dividends in arrearsDividends that accumulate when a company fails to pay cumulative dividends to preferred stockholders, 550.
- 9StockbrokersPeople who with their representatives do the trading on the floor of the stock exchange, 550, 552.
- 10Stock yieldDividend per share divided by the closing price per share, 550.
- 11Earnings per share (EPS)Annual earnings divided by total number of shares outstanding, 551.
- 12Price-earnings (PE) ratioClosing price per share of stock divided by earnings per share, 551.
- 13Price-earnings (PE) ratioClosing price per share of stock divided by earnings per share, 551.
- 14BondsBond selling for more than the face value, 553.
- 15DiscountAmount bond sells below $1,000, 553.
- 16PremiumPeriodic payments that one makes for various kinds of insurance protection, 522, 533.
- 17Bond yieldTotal annual interest divided by total cost, 554.
- 18Mutual fundInvestors buy shares in the fund’s portfolio (group of stocks and/or bonds), 555.
- 19Net asset value (NAV)The dollar value of one mutual fund share; calculated by subtracting current liabilities from current market value of fund’s investments and dividing this by number of shares outstanding, 555.