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    Ast - Midterm Assignment 2

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    Vinus Aleysa Obregon
    The document defines various corporate terms related to forming and operating a corporation. It includes definitions for terms like articles of incorporation, authorized capital, board of directors, bylaws, common stock, corporation, cumulative preferred stock, discount on stock, incorporators, issued stocks, legal capital, minute book, no par stock, organization cost, outstanding stocks, paid-in capital, par value, participating preferred stocks, preferred stocks, retained earnings, stated value, stock certificate, stockholders equity, stockholders ledger, subscription record, treasury stock, and stock split.

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    © All Rights Reserved
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    Ast - Midterm Assignment 2

    Uploaded by

    Vinus Aleysa Obregon
    14 views12 pages
    The document defines various corporate terms related to forming and operating a corporation. It includes definitions for terms like articles of incorporation, authorized capital, board of directors, bylaws, common stock, corporation, cumulative preferred stock, discount on stock, incorporators, issued stocks, legal capital, minute book, no par stock, organization cost, outstanding stocks, paid-in capital, par value, participating preferred stocks, preferred stocks, retained earnings, stated value, stock certificate, stockholders equity, stockholders ledger, subscription record, treasury stock, and stock split.

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    Ast- Midterm Assignment 2

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    The document defines various corporate terms related to forming and operating a corporation. It includes definitions for terms like articles of incorporation, authorized capital, board of directors, bylaws, common stock, corporation, cumulative preferred stock, discount on stock, incorporators, issued stocks, legal capital, minute book, no par stock, organization cost, outstanding stocks, paid-in capital, par value, participating preferred stocks, preferred stocks, retained earnings, stated value, stock certificate, stockholders equity, stockholders ledger, subscription record, treasury stock, and stock split.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    14 views12 pages

    Ast - Midterm Assignment 2

    Uploaded by

    Vinus Aleysa Obregon
    The document defines various corporate terms related to forming and operating a corporation. It includes definitions for terms like articles of incorporation, authorized capital, board of directors, bylaws, common stock, corporation, cumulative preferred stock, discount on stock, incorporators, issued stocks, legal capital, minute book, no par stock, organization cost, outstanding stocks, paid-in capital, par value, participating preferred stocks, preferred stocks, retained earnings, stated value, stock certificate, stockholders equity, stockholders ledger, subscription record, treasury stock, and stock split.

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    of 12

    CORPORATE TERMS

    CORPORATION
    Name: Vinus Aleysa M. Obregon
    Article of Incorporation
    The title of the document filed in many states
    to create a corporation. Also known as the
    certificate of incorporation or corporate
    charter.

    Authorized Capital
    also known as "authorized stock," "authorized
    shares," or "authorized capital stock"—refers to
    the maximum number of shares a company is
    legally allowed to issue or offer based on its
    corporate charter.

    Board of Directors
    The governing body of a corporation who is
    elected by shareholders. The directors are
    responsible for selecting the officers and the
    supervision and general control of the
    corporation.
    Bylaws
    The regulations of a corporation that, subject to
    statutory law and the articles of incorporation,
    provide the basic rules for the conduct of the
    corporation's business and affairs.

    Common Stock
    A class of shares that has no special features and
    possesses no greater rights than any other shares
    except for Preferred Shares. All capital stock
    except for preferred stock is considered Common
    Shares.

    Corporation
    An entity formed and authorized by, created under
    and governed by the laws of the state of incorporation
    to act as a single person even though it is constituted
    by one or more persons and legally endowed with
    various rights and duties including the capacity of
    succession.
    Cumulative Preferred
    Stock
    a type of preferred stock with a provision that stipulates that
    if any dividend payments have been missed in the past, the
    dividends owed must be paid out to cumulative preferred
    shareholders first..

    Discount on Stock
    occurs when the stock's par value is higher than the issuing
    price. The difference between the greater par value and the
    lesser issue price is considered the discount.

    Incorporators
    The person(s) who perform the act of incorporation and who sign
    the articles of incorporation and deliver them for filing.
    Issued Stocks
    includes shares that have been sold, given to
    employees or third parties as compensation or
    payment (respectively), donated, or issued in
    settlement of a debt - in short, every possible
    share that has been distributed.

    Legal Capital
    is that amount of a company's equity that cannot
    legally be allowed to leave the business; it cannot be
    distributed through a dividend or any other means. It
    is the par value of common stock and the stated value
    of the preferred stock that a business has sold or
    otherwise issued to investors.

    Minute Book
    a corporate record book that contains all of the most
    important documentation about a corporation and its
    history. Some of the documents found in a minute
    book include: Articles of Incorporation or Constating
    Documents. By-Laws. Resolutions.
    No par stock
    Shares for which the articles of
    incorporation do not fix a par value and that
    may be issued for any consideration
    determined by the board of directors.

    Organization Cost
    are expenses related to forming a
    corporation, partnership, or limited liability
    company (not a sole proprietorship). These
    may include legal, management, consulting,
    accounting and filing fees.

    Outstanding Stocks
    is the authorized stock that the company has sold
    (issued) to and that shareholders currently hold.
    Commonly, the owners of outstanding stock receive
    dividend payments and have voting rights in
    shareholders' meetings. The company issues stock
    certificates to the owners of outstanding stock.
    Paid-in Capital
    is the payments received from investors in
    exchange for an entity's stock. This is one of
    the key components of the total equity of a
    business.

    Par Value
    A minimum price of a share below which the
    share cannot be issued, as designated in the
    articles of incorporation.

    Participating preferred stocks


    a type of preferred stock that gives the holder the
    right to receive dividends equal to the customarily
    specified rate that preferred dividends are paid to
    preferred shareholders, as well as an additional
    dividend based on some predetermined condition.
    A class of shares that entitles the holders
    PREFERRED STOCKS to preferences over the holders of common
    shares, usually with regard to dividends
    and distributions of assets upon
    dissolution or liquidation.

    are the amount of profit a company has left


    over after paying all its direct costs,
    RETAINED EARNINGS indirect costs, income taxes and its
    dividends to shareholders.

    is the amount assigned to a share of stock


    and recorded in the issuer's accounting
    STATED VALUE records. This value is only assigned when a
    share has no par value. The amount of the
    stated value increases the capital stock
    account of the issuer when a share is
    issued
    Stock Certificate Stockholders Equity Stockholders
    An instrument providing
    Ledger
    This term refers to the amount is a minute book document that
    evidence of ownership of records the holdings of each
    one or more shares of the of equity a corporation's
    owners have left after shareholder of a corporation. The
    capital stock of a purpose of a ledger is to show, in
    corporation. May also be liabilities or debts have been
    paid. Equity simply refers to chronological order: How a
    referred to as a share person's holdings in a particular
    certificate. the difference between a
    company's total assets and class or series of shares of a
    total liabilities. corporation change over time.
    Subscription Record
    Is the record of the agreement executed by
    the subscriber

    Treasury stock
    Shares of a corporation reacquired by a
    corporation.

    Stock Split
    A division of corporate stock by the issuance
    to existing shareholders of a specified
    number of new shares with a corresponding
    lowering of par value for each outstanding
    share.
    Liquidating Dividend Cumulative preferred Subscribed capital
    stock stock
    is a type of payment that a is a type of preferred stock refers to any capital raised
    corporation makes to its with a provision that through subscribed shares.
    shareholders during a stipulates that if any dividend Put simply, it's the value of
    partial or full liquidation payments have been missed in all the shares that investors
    the past, the dividends owed agree to purchase during a
    must be paid out to new issuance
    cumulative preferred
    shareholders first.
    THANK YOU!

    PRESENTED BY:
    Vinus Aleysa M. Obregon
    BA7MA

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