Types of Bonds
These bonds allow the bondholder to covert the bond into another security- typically common stock
Convertible Bonds
A type of note where the issuing entity is required to pay the face value to the holder when it matures and usually to pay interst periodically at a specified rate
Bond
The maximum number of shares a company can issue
Authorized Shares
The date on which a stockholder must own one or more shares of stock in order to receive the dividend
Date of Record
Beyond one year
What is the name of the bond that has no attached collateral?
A bond issued above face value
Premium
The number of shares actually sold to stockholders
Issued Shares
Once additional paid in capital is drained, you should use this account
Retained Earnings
What is the main benefit to owning common stock?
Voting rights
These bonds have some collateral (ie. real estate, vehicle) in case the borrower fails to make the payments.
Secured Bonds
A bond selling below face value
Discount
The number of issued shares actually in the hands of stockholders
Outstanding Shares
This date is when a company annouces their intention to pay out dividends to shareholders
Date of Declaration
What is the main benefit to owning preferred stock?
What is the name of the bond where borrowers can pay off the bonds prior to their due date?
Callable Bonds
Previously issued stock that is repurchaed by the issuing corporation
Treasury Stock
How do you calculate the number of shares outstanding?
Issued shares - Treasury stock
What type of stock is not eligible for dividends?
Treasury stock
The right granted by a corporation to purchase a specified number of shares of its capital stock at a stated price and within a state time period (for shareholders)
Stock Warrant
These are unsecured bonds where the risk of the borrower failing to make the interst and/or principal payments is relatively high.
Junk Bonds
Amounts paid periodically by a corporation to its stockholders as a return of their invested captial
What percentage is a small stock dividend capitalized at?
Less than 25%
Dividends reduce this account
Retained Earnings
The right to buy stock at a set price (for employees and executives as compensation for their services)
Stock Option