Chapter 21

A corporation, often owned by a few people or by a family, that does not offer its stock for sale to the general public.

• publicly held corporation

• closely held corporation

• Board of directors

• Stockholder

A corporation whose stock is widely held, has a large market, and is usually traded on a stock exchange.

• publicly held corporation

• closely held corporation

• Board of directors

• Stockholders

A group of people, elected by the stockholders, who govern and are responsible for the affairs of a corporation

• Separate Legal Entity

• closely held corporation

• Stockholders

• board of directors

closely held corporation

• closely held corporation

• Authorized Capital Stock

• closely held corporation

• Separate Legal Entity

The dollar amount assigned to each share of stock before it is sold to the public; used to determine the amount credited to the capital stock account.

• Pure value

• Owners equity

• Par value

• Retained earnings

The stock issued by a corporation when it issues only one class of stock.

• Proxy

• Par value

• Common stock

• Authorized Capital Stock

A document that transfers a stockholder’s voting rights to someone else

• closely held corporation

• common stock

• proxy

• preferred stock

Stock whose owners have certain privileges over common stockholders.

• Common stock

• preferred stock

• proxy

• par value

The account that represents the amount of cash received by a corporation over the stock’s par value.

• Pure value

• Par value

• Paid-in-Capital in Excess of Par

• preferred stock

A distribution of cash to stockholders of a corporation; reduces the corporation’s retained earnings.

• Dividend

• Equity

• Paid-in-Capital in Excess of Par

• preferred stock