Match the terms with the definitions.
-Stock that has certain preferences or rights superior to common stock.

Question

Quizplus · Accepted Answer

Preferred stock has certain preferences or rights superior to common stock.

Answer: B
 The board of directors is responsible for making important business decisions for a company, including setting corporate policies and goals.

Answer: C
 Bylaws are a set of rules that govern the internal affairs of a corporation.

Answer: D
 Premium refers to the amount paid over the face value of a security.

Answer: E
 Capital stock subscription is an agreement to purchase a specific number of shares of a company's stock at a certain price.

Answer: F
 Preferred stock has certain preferences or rights superior to common stock.

Answer: G
 Paid-in capital is the money that a company raises by selling its stock.

Answer: H
 Cumulative preferred stock guarantees that if dividends are not paid in one year, they will accumulate and be paid in a future year.

Answer: I
 Dividends are a portion of a company's earnings that are paid out to shareholders.

Answer: J
 Double taxation refers to the fact that both a corporation's profits and the dividends paid to shareholders are taxed.

Answer: K
 Outstanding stock refers to the number of shares of a company's stock that are currently held by shareholders.

Answer: L
 No-par stock is a type of stock that does not have a par value.

Match the Terms with the Definitions