Term
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Definition
| invested capital consisting primarily of amounts invested by shareholders when they purchase shares of stock from the corporation |
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Term
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Definition
| amounts earned by the corporation in behalf of its shareholders and not (yet) distributed to them as dividends |
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Term
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Definition
| traditional net income plus other nonowner changes in equity |
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Term
| Accumulated Other Comprehensive Income |
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Definition
| amount of other comprehensive income (nonowner changes in equity other than net income) accumulated over the current and prior periods |
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Term
| Statement of Shareholders' Equity |
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Definition
| statement disclosing the source of changes in the shareholders' equity accounts |
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Term
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Definition
| typically has a preference (a) to specified amount of dividends (stated dollar amount per share or percentage of par value per share) and (b) to distribution of assets in the event the corporation is dissolved |
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Term
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Definition
| shareholders' right to exchange shares of preferred stock for common stock at a specified convertion ratio |
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Term
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Definition
| might allow preferred shareholders the option, under specified conditions, to return their shares for a predetermined redemption price |
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Term
| Cumulative Preferred Shares |
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Definition
| if the specified dividend is not paid in a given year, the unpaid dividends accumulate and must be made up in a later dividend year before any dividends are paid on common shares |
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Term
| Participating Preferred Shares |
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Definition
| preferred shareholders are allowed to receive additional dividends beyond the stated amount |
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Term
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Definition
| shares repurchased and not designated as treasury stock |
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Term
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Definition
| shares repurchased and not retired |
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Term
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Definition
| specific date stated as to when the determination will be made of the recipient of the dividend |
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Term
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Definition
| date usually two business dats before the date of the record and is the first day the stock trades without the right to receive the declared dividend |
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Term
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Definition
(Dividend in kind or nonreciprocal transfer to owners)
when a noncash asset is distributed |
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Term
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Definition
| distribution of additional shares of stock to current shareholders of the corporation |
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Term
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Definition
| stock distribution of 15% or higher, sometimes called a large stock dividend |
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Term
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Definition
| when a company decreases, rather than increases, its outstanding shares |
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Term
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Definition
| a stock dividend or stock split results in some shareholders being entitled to fractions of whole shares |
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Term
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Definition
| shares subject to forfeiture by the employee if employment is terminated within some specified number of years from the date of grant |
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Term
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Definition
| employees aren't acutally awarded shares, but rather are given the option to buy shares at a specified exercise price within some specified number of years from the grant date |
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Term
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Definition
| the difference between the market price of the shares and the option price at which they can be acquired. |
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Term
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Definition
| statistical models that incorporate information about a company's stock and the terms of the stock option to estimate the option's fair value. |
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Term
| Employee Share Purchase Plans |
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Definition
| permit all employees to buy shares directly from their company, often at favorable terms |
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Term
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Definition
| the amount of income earned by a company expressed on a per share basis |
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Term
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Definition
| a firm that has no potential common shares |
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Term
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Definition
| securities that, while not being common stock may become common stock through their exercise, conversion, or issuance and therefore dilute (reduce) earnings per share |
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Term
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Definition
| computed by dividing income available to common shareholders (net income less any preferred stock dividends) by the weighted-average number of common shares outstanding for the period |
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Term
| Complex Capital Structure |
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Definition
| potential common shares are outstanding |
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Term
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Definition
| incorporates the dilutive effect if all potential common shares |
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Term
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Definition
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