cross word

ACROSS

4 the date on which a corporation announces its intention to pay a dividend on common stock.

5 the right granted by a corporation to purchase a specified number of shares of its capital stock at a stated price and within a stated time period.

10 a document that authorizes the creation of the corporation, setting forth its name, purpose, and the names of the incorporators.

11 the accumulated losses over the entire life of a corporation that have not been paid out in dividends.

12 the maximum number of shares a company may issue in each class of stock.

13 the basic ownership interest in a corporation. Owners of common stock have the right to vote in the election of the board of directors, share in the profits and dividends of the company, keep the same percentage of ownership if new stock is issued (preemptive right), and share in the assets in liquidation in proportion to their holdings.

15 a provision that requires the eventual payment of all preferred dividends–both dividends in arrears and current dividends–to preferred stockholders before any dividends are paid to common stockholders.

17 previously issued stock that is repurchased by the issuing corporation.

19 the number of issued shares actually in the hands of stockholders.

20 dividends that return paid-in capital to stockholders; liquidating dividends occur when retained earnings has been reduced to zero.

22 the amount received in excess of the par value.

24 the owners of a corporation who own its shares in varying numbers.

26 a ratio that is basically the same as the return on equity ratio. It is calculated as: Net Income/(Total Equity + Preferred Stock + Paid-In Capital - Preferred Stock).

29 the number of shares actually sold to stockholders.

30 stock without a par value.

31 a class of stock that generally does not give voting rights, but grants specific guarantees and dividend preferences.

32 the total of comprehensive income for all periods and conveys the changes in assets and liabilities resulting from all transactions with nonowners.

33 a provision that requires that current dividends must be paid to preferred stockholders before any dividends are paid to common stockholders.

DOWN

1 the amount of capital that, under law, cannot be returned to the corporation’s owners unless the corporation is liquidated.

2 the owners’ claims against the assets of a corporation after all liabilities have been deducted.

3 a dividend paid to stockholders in the form of additional shares of stock (instead of cash).

6 amounts paid periodically by a corporation to its stockholders as a return of their invested capital. Dividends represent a distribution of retained earnings, not an expense.

7 a ratio that measures the income available for common stockholders on a per-share basis. EPS is calculated as net income less preferred dividends divided by the average number of common shares outstanding.

8 a provision that stockholders of participating preferred shares receive, in addition to the stated dividend, a share of amounts available for distribution as dividends to other classes of stock.

9 it is an arbitrary monetary amount printed on each share of stock that establishes a minimum price for the stock when issued, but does not determine its market value. For debt, par value is the amount of money the borrower agrees to repay at maturity.

14 the correction of an error made in the financial statements of a prior period. The adjustment is entered as a direct adjustment to retained earnings.

16 the date on which the dividend will actually be paid.

18 cumulative preferred stock dividends remaining unpaid for one or more years are considered to be in arrears.

21 the accumulated earnings (or losses) over the entire life of the corporation that have not been paid out in dividends.

23 the portion of a corporation’s stockholders’ equity contributed by investors (owners) in exchange for shares of stock.

25 the price at which employees can buy stock when their employer when it grants stock options.

27 a stock issue that increases the number of outstanding shares of a corporation without changing the balances of its equity accounts.

28 the date on which a stockholder must own one or more shares of stock in order to receive the dividend.